Vanguard’s Outgoing CEO Maintains Stance Against Bitcoin ETF, Despite Inquiries

Vanguard CEO Warns Against Bitcoin ETFs in Retirement Investment Plans

The CEO of The Vanguard Group, Tim Buckley, remains staunchly opposed to Bitcoin exchange-traded funds (ETF) despite facing backlash from clients and ongoing inquiries about the company’s intentions to offer them.

In a recent video released by Vanguard, Buckley cautioned against including Bitcoin (BTC) ETFs in retirement investment plans due to the asset’s volatile nature.

Buckley also argued that Bitcoin’s status as a store of value is questionable, noting its significant decline during the 2022 stock market crash.

“When stocks took a hit in the recent crisis, Bitcoin followed suit. This makes it a speculative investment and difficult to justify in a long-term portfolio,” he stated.

Bitcoin’s Rise and Fall in 2021 and 2022

In 2021, the value of Bitcoin skyrocketed to an unprecedented high of over $69,000, only to drop significantly in 2022 to under $16,000. This sudden decline was attributed to the United States Federal Reserve’s decision to increase interest rates, causing a 21% drop in the S&P 500.

The Impact of Web 3.0 on Investing and Business

With the recent approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission, many have been curious about the stance of investment firms like Vanguard. However, the firm’s CEO, Buckley, has stated that they will not offer spot Bitcoin ETFs unless there are significant changes in the asset class.

Web 3.0, also known as the “Semantic Web,” is the next generation of the internet and is expected to revolutionize the way we do business and invest. Unlike Web 2.0, which focused on user-generated content and social media, Web 3.0 will incorporate artificial intelligence, machine learning, and decentralized systems to create a smarter and more efficient online experience.

As we enter the era of Web 3.0, it is crucial for individuals and businesses to learn about this new technology and its potential impact. Investing in stocks related to Web 3.0, such as AI and blockchain, could also prove to be a wise decision in the long run.

Vanguard Faces Pushback for Decision Against Offering Bitcoin ETFs in the Age of Web 3.0

On Jan. 12, it was reported by Cointelegraph that Vanguard has no intention of providing Vanguard Bitcoin ETFs or other crypto-related products, despite the growing popularity of web 3.0.

However, this decision has been met with resistance from existing customers, particularly those in the crypto industry.

Coinbase’s senior engineering manager, Yuga Cohler, is among those who have expressed their disappointment, stating that he will be transferring his Roth 401(k) savings from Vanguard to Fidelity, one of the few approved spot Bitcoin ETF applicants.

“Vanguard’s paternalistic stance against Bitcoin ETFs goes against my investment philosophy,” Cohler stated on X.

Despite not having plans to offer a cryptocurrency product, the company still holds a significant indirect stake in Bitcoin as the second-largest institutional shareholder of MicroStrategy.

Cointelegraph reported on Jan. 12 that Vanguard owns 8.24% of the company.