According to Eric Balchunas, senior ETF analyst, Vanguard has absorbed approximately $30 billion in inflows since the launch of Bitcoin ETFs, a figure six times greater than what Bitcoin ETFs have achieved.
According to Eric Balchunas, senior ETF analyst, Vanguard has absorbed approximately $30 billion in inflows since the launch of Bitcoin ETFs, a figure six times greater than what Bitcoin ETFs have achieved.
This influx underscores Vanguard’s dominance in traditional finance (TradFi), despite the rapid growth of the crypto sector and the significant attention Bitcoin ETFs have attracted.
#BoycottVanguard fails
Vanguard’s steadfast investment approach, deeply rooted in the principles established by its late founder, Jack Bogle, has led to an outright refusal to participate in the cryptocurrency market, including Bitcoin ETFs.
This decision sparked considerable debate within the crypto community, culminating in a #BoycottVanguard movement on social media platforms. Despite this reaction, Vanguard’s position remains unchanged, with the company removing even futures-backed Bitcoin funds from its platform.
This move shows Vanguard’s commitment to Bogle’s vision of investing in assets that generate tangible returns, such as dividends and interest payments, and its skepticism toward commodities and assets it considers speculative, such as cryptocurrencies.
Ignoring the hype
Vanguard’s conservative stance on investing is not simply a reaction to market trends but a reflection of a deeply held philosophy.
The company’s exclusion of cryptocurrency-related products from its offerings is consistent with its focus on long-term value-generating assets rather than speculative investments. Vanguard’s approach is characterized by a rigorous new product selection process, emphasizing investment merit, customer needs, competitive advantage and viability.
Despite the appeal of blockchain technology and its potential to improve capital market efficiency, Vanguard remains cautious and prioritizes the interests of its long-term investor base over the speculative nature of current crypto offerings.
