Vanguard to ban all Bitcoin ETFs on its platform


Vanguard has restricted its customers from purchasing Bitcoin ETFs, including the popular Grayscale Bitcoin ETF (GBTC), and reportedly plans to ban these products from its platform for being too risky.

Vanguard’s decision to ban all Bitcoin ETFs from its platform was first reported by a senior ETF analyst at Bloomberg. The company told customers:

How To Get Free Crypto  

“Currently we aren’t allowing those [GBTC] to be purchased as it doesn’t fit with Vanguard’s investment philosophy.”

Vanguard did not respond to a request for comment as of press time.

No plans to support Bitcoin

Vanguard initially had the option to buy GBTC but stopped supporting the product in 2022. Customers expected the platform to allow investing in Bitcoin ETFs after the SEC approved them for trading on Jan. 10.

However, they were unable to purchase GBTC when trading began on Jan. 11 and were quickly informed that they could only sell GBTC on the platform for now.

Customers initially speculated that the platform was hesitant because it was the ETFs’ first day of trading or “IPO day.” Meanwhile, some argued that this was part of the course as Vanguard has to take these products through compliance procedures before they can allow trading.

However, industry sources claim Vanguard does not plan to add the ETFs to its platform and will maintain the ban on these ETFs in the near future. The company has remained silent on the matter publicly but told customers who complained that it will not allow the purchase of GBTC for now.

Coinbase Banner  

This limitation echoes the restrictions imposed by Robinhood on GameStop (GME) trading, which previously led to significant controversy and debate about retail investors’ rights and market fairness.

Industry raises concerns

The reaction on social media has been swift and divided, with critics expressing concerns that such decisions could render traditional investment companies irrelevant to younger investors, who are more inclined towards cryptocurrencies and digital assets.

Once the demographic shifts and generational wealth is transferred to the next generation,  companies like Vanguard could become obsolete if they continue to resist emerging investment trends.

Supporters of cryptocurrencies have long championed the inclusion of digital assets like Bitcoin in mainstream investment portfolios. The approval of spot Bitcoin ETFs is seen as a watershed moment for the industry that will lead to increased institutional investment.

FreeBitcoin Banner  

Some have viewed Vanguard’s decision to restrict access to these products as a form of market manipulation, while others think the company is deeply out of touch with emerging trends.

Go to Source
Author: Assad Jafri


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.