Vanguard Refuses To Offer Bitcoin ETF To Clients, Here's Why!

Vanguard claims he is not interested in offering bitcoin to investors. (Photo; Doc. Cellingmount)

JAKARTA - The world's largest investment company, Vanguard, refuses to offer investment products related to crypto assets, including Bitcoin Spot ETF. The company's main reason is because cryptocurrencies are considered speculative assets that are not in accordance with the long-term investment philosophy.

"We don't see the clear investment value of crypto. We focus more on assets that have predictable cash flows, such as stocks, bonds, or property," said Janel Jackson, Global Head of ETF Capital Markets and Brokers & Index Relations at Vanguard, in an interview.

Jackson explained that Vanguard had a rigorous four-step screening process before offering new investment products to his clients. The process includes evaluating investment value, feasibility with client needs, competitive excellence, and other considerations.

"We don't see crypto meeting these criteria. We are also concerned about crypto-related risks, such as volatility, security, regulation, and the environment," he added.

Even so, Vanguard does not turn a blind eye to the development of blockchain technology, which is the basis of crypto. The company has even implemented blockchain technology to increase efficiency and transparency in the mutual fund process.

Andrew Kadjeski, Head of Brokerage & Investments in Vanguard, said that the company continues to follow technological developments and innovations in the financial industry, including crypto. However, he emphasized that long-term investor interests have always been a top priority.

"We always try to provide the best products and services for our clients, with low costs and consistent performance. We don't want to be tempted by high-risk and untested short-term trends," he said.

One of the products rejected by Vanguard is Bitcoin ETF, which is a fund that follows the price of Bitcoin and is traded on the stock exchange. This product has obtained approval from the Securities and Exchange Commission (SEC) earlier this year, and has attracted the interest of many investors.

Unfortunately, Vanguard considers that Bitcoin ETF does not provide significant benefits to investors, due to high costs, inaccurate tracking, and market manipulation potentials. In addition, Vanguard also criticized investor behavior for transactions and pursuing rapid profits from Bitcoin ETFs.

"We believe that disciplined and long-term investments are key to achieving financial goals. We advise investors to save more, trade less, and keep their portfolio diversified," Jackson said.

By managing more than $7 trillion (IDR 110,670 trillion) of assets, Vanguard is one of the most vocal investment companies against crypto products. Vanguard's stance shows a difference of views between conservative and innovative companies in responding to crypto phenomena.