“We will not launch crypto ETFs”

VaselineAugust 14, 2024

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Vanguard’s Ramji strongly rejects the introduction of crypto ETFs.
Despite market trends, Vanguard maintains its identity by focusing on client-centric strategies.

Vanguard CEO Salim Ramji said the company will not follow market trends that conflict with its core principles and customer needs. In an exclusive interview with ETF.com, Ramji said Vanguard “will not launch crypto ETFs,” reinforcing the firm’s commitment to its core values.

“I’m not going to copy competitors,” Ramji said when asked if he would adopt a strategy similar to BlackRock, where he was head of iShares for about 5 years.

Vanguard will maintain its identity and core values, avoiding drastic departures from its established principles, Ramji noted.

While staying true to its core, Vanguard will pursue innovative solutions within its existing capabilities, according to the new CEO.

“But I want more innovation. For example, we have outstanding active fixed income capacity,” Ramji said.

“Jack Bogle’s ‘cost matters’ hypothesis is something we will always keep in mind,” he added.

Ramji succeeds Tim Buckley following Vanguard’s appointment in May. The former CEO of the company has made numerous statements against spot offers of Bitcoin products.

The transition first raised hopes that the investment giant would consider offering crypto ETFs at sight. However, Ramji confirmed that Vanguard will not solicit a Bitcoin ETF or host such products on its brokerage platform.

Sapphire

Despite the approval of Bitcoin and Ethereum spot ETFs in the US, Vanguard chooses to maintain its stance that crypto assets like Bitcoin and Ethereum are speculative rather than investment-worthy. The firm banned its clients from trading U.S. spot Bitcoin ETFs shortly after their launch.

Bloomberg ETF analyst Eric Balchunas previously commented on the firm’s hedge stance, suggesting that while frustrating, it aligns with Vanguard’s co-op business model, which doesn’t prioritize income maximization through trendy ETFs .

I know this drives CT crazy, but I’d take the L here and move on, Vanguard is not a typical asset manager (constantly looking for income). they like a co-op better and have taken almost billions a day for over a decade so they don’t envy other people’s hit….

— Eric Balchunas (@EricBalchunas) May 30, 2024