Analyst foresees Vanguard’s shift towards a more favorable view on ETFs.
Eric Balchunas, Bloomberg’s senior ETF analyst, has predicted that asset manager Vanguard may soften its stance against spot Bitcoin exchange-traded funds (ETFs). Vanguard, known for its cautious approach, has historically kept its distance from Bitcoin and other cryptocurrencies due to their volatile nature. However, Balchunas suggests that the need for wealth expansion and diversified investments might push the Pennsylvania-based firm in a different direction. With approximately $7.7 trillion in assets under management, Vanguard is likely to reconsider its position on alternative assets such as spot Bitcoin ETFs. This speculation comes after Vanguard made headlines by limiting customer access to the newly approved spot Bitcoin ETFs, a decision that sparked controversy in the crypto community. As a result, some Vanguard clients have moved their funds to other firms that are more open to digital currencies. Surprisingly, Vanguard also announced plans to withdraw Bitcoin futures ETFs from its platform, reaffirming its commitment to core investment values. Despite this move, Vanguard’s significant investment in MicroStrategy, a leading holder of Bitcoin, has raised questions. MicroStrategy, co-founded by Bitcoin enthusiast Michael Saylor, currently holds 190,000 BTC valued at over $8.1 billion. Vanguard holds 1 million MicroStrategy shares, worth over $547 million as of September 2023, making them the second-largest institutional shareholder in the company. Additionally, Vanguard reportedly made substantial investments in Bitcoin mining companies last year, including Riot Platforms and Marathon Digital. These investment trends suggest that Vanguard may have a more nuanced approach to cryptocurrencies, even if it remains hesitant about Bitcoin ETFs for now.
