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 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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About Authors

Nathan Crooks is the U.S managing editor at The Block, based in Miami. He was previously at Bloomberg News for 12 years, where he helmed coverage of South Florida after roles as a breaking news editor and bureau chief in Caracas, Venezuela. He's interviewed presidents, government ministers and CEOs, and, besides crypto, has covered major news events on the ground from earthquakes to hurricanes to the Chilean mine rescue in 2018. Nathan, a native of Clarion, Pennsylvania, holds a bachelor's degree from the University of Toronto, where he completed a specialist in political science, and an MBA from American University in Washington, D.C.
Sarah is a reporter at The Block covering policy, regulation and legal happenings. Before, Sarah was a reporter with CQ Legal writing about securities regulation, which is where she first started reporting on crypto. Sarah has also written for The Bond Buyer and American Banker, among other finance-related publications. She graduated from the University of Missouri and earned a degree in print and digital journalism. Sarah is based in Washington D.C., and is an avid coffee lover. You can follow her on Twitter @ForTheWynn.

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