Vanguard Restricts Purchases of Bitcoin ETF at the Spot Market
Vanguard, the asset manager, has made it clear that it will not be allowing the purchase of spot Bitcoin ETFs on its platform. According to a recent report from the Wall Street Journal, Vanguard has decided against offering new instruments on its brokerage platform due to their lack of alignment with its traditional offerings.
One of Vanguard’s clients, Tony Spencer, revealed that a representative informed him that the purchase of spot Bitcoin ETFs is not permitted because it contradicts Vanguard’s investment philosophy. Additionally, Spencer stated that Vanguard only allows investors to sell Grayscale’s flagship Bitcoin product, GBTC, which recently transitioned into a spot ETF. Clients of other investment firms including Citi, Merrill Lynch, Edward Jones, and UBS have also reported being unable to purchase spot Bitcoin ETFs on their respective platforms.
The U.S. Securities and Exchange Commission (SEC) has officially given its approval for the launch of the first 11 ETFs that directly invest in Bitcoin. This development comes after an unauthorized individual gained access to the SEC’s account on the social network “X” and shared information regarding the regulator’s permission to launch these ETFs. The commission later denied this information and promptly deleted it.
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