Vanguard won't offer spot bitcoin ETFs, says high volatility is bad for generating long-term returns
Quick Take
- Users with Vanguard brokerage accounts have not been able to buy spot bitcoin ETFs during their first day of trading in the U.S.
- A company spokesperson said it has no plans to offer crypto products, citing high volatility.
As trading of spot bitcoin funds got off to a first day of action in the U.S., users with brokerage accounts at Vanguard were not able to participate.
When contacted by telephone on Thursday, a day after the Securities and Exchange Commission approved 11 spot funds, a Vanguard customer service representative said bitcoin ETFs were not available on the platform because they were "highly speculative," "unregulated" and didn't fit with the company's long-term investing philosophy. The representative noted that the platform didn't allow other kinds of investments, such as leveraged ETFs.
A company spokesperson confirmed that the spot bitcoin funds were not available on the platform.
"We also have no plans to offer Vanguard Bitcoin 
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ETFs or other crypto-related products – our perspective is long-standing that cryptocurrencies' high volatility runs counter to our goal of helping investors generate positive real returns over the long term," the spokesperson said.
Clients who tried to buy a share of BlackRock's IBIT were told the trade could not be completed, with the website stating that "securities may be unavailable for purchase at Vanguard due to a number of variables including regulatory restrictions, corporate actions, or various trading and/or settlement limitations."
That came in contrast to other brokerages such as E*TRADE, Charles Schwab and Fidelity, where users with brokerage accounts were able to purchase the spot bitcoin ETFs. On the Fidelity platform, users who tried to purchase shares were reminded that the investment was subject to a "Designated Investments Agreement" that acknowledged the user was an experienced investor with a high tolerance for risk.
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