By Bitcoin.com - 3 months ago - Reading Time: 2 minutes
Vanguard Blocks Customers From Trading SEC-Approved Spot Bitcoin ETFs
Several investment firms, including Vanguard, reportedly block customers from trading spot bitcoin exchange-traded funds (ETFs). “Our perspective is that these products do not align with our offer focused on asset classes such as equities, bonds, and cash,” the firm explained. Dissatisfied with the lack of spot bitcoin ETF options, some customers closed their Vanguard accounts and moved their funds to other platforms that offer them.
Vanguard Has No Plans to Offer Spot Bitcoin ETF Trading
Excitement buzzed through financial markets on Thursday as U.S. spot bitcoin exchange-traded funds (ETFs) finally began trading after years of anticipation. The Securities and Exchange Commission (SEC) approved 11 of them on Wednesday.
However, soon after the market opened, some people shared on social media platform X that their financial institutions, including Vanguard, aren’t offering spot bitcoin ETFs. A Vanguard spokeswoman confirmed to CNBC that the company has no plans to launch a bitcoin ETF of its own or to list funds from other issuers, stating:
While we continuously evaluate our brokerage offer and evaluate new product entries to the market, spot bitcoin ETFs will not be available for purchase on the Vanguard platform. We also have no plans to offer Vanguard bitcoin ETFs or other crypto-related products.
“Our perspective is that these products do not align with our offer focused on asset classes such as equities, bonds, and cash, which Vanguard views as the building blocks of a well-balanced, long-term investment portfolio,” the Vanguard spokesperson added
Frustrated by Vanguard’s stance on spot bitcoin ETFs, several bitcoin enthusiasts said they closed their Vanguard accounts and moved their funds to platforms, like Fidelity, for access to these newly approved products. A number of users also reported that Vanguard now only allows them to sell their Grayscale Bitcoin Trust (GBTC) holdings, even though they were previously able to buy them.
Just fully transferred my retirement account from @Vanguard_Group to @Fidelity because Vanguard won't support Bitcoin ETFs, and appears to be manipulating the price of Bitcoin by only allowing people to sell GBTC, not buy.
It's easy, takes just 5 mins. pic.twitter.com/DnzzYu1YPl
— Vanessa Harris (@technologypoet) January 11, 2024
Several other investment banks, including UBS, Morgan Stanley, Bank of America’s Merrill Lynch, Citi, and Edward Jones, also reportedly held off on offering spot bitcoin ETFs to their customers on the first day. While some plan to offer access in the future, possibly with certain conditions, others haven’t indicated their stance.
What do you think about Vanguard choosing not to let customs trade the recently approved spot bitcoin ETFs? Let us know in the comments section below.
Original source: Bitcoin.com