We will not be launching crypto ETFs
Key Takeaways
Vanguards Ramji firmly rejects the introduction of crypto ETFs.
Despite market trends, Vanguard maintains its identity focusing on client-centric strategies.
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Salim Ramji, Vanguards CEO, said the company would not chase market trends that conflict with its core principles and client needs. In an exclusive interview with ETF.com, Ramji stated that Vanguard will not be launching crypto ETFs, reinforcing the firms commitment to its foundational values.
Im not going to copy competitors, Ramji asserted when asked if he would adopt a similar strategy to BlackRock, where he served as head of iShares for around 5 years.
Vanguard will maintain its core identity and 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 an outstanding active fixed income capability, Ramji stated.
Jack Bogles cost matters hypothesis is something we will always keep in mind, he added.
Ramji succeeds Tim Buckley following Vanguards appointment in May. The companys former CEO made countless statements against spot Bitcoin product offerings.
The transition first sparked hopes that the investment giant would consider offering spot crypto ETFs. However, Ramji has confirmed that Vanguard will not file for a Bitcoin ETF and will not host such products on its brokerage platform.
Despite the approval of spot Bitcoin and Ethereum ETFs in the US, Vanguard chooses to stick to its stance that crypto assets like Bitcoin and Ethereum are speculative rather than investment-worthy. The firm prohibited its clients from trading US spot Bitcoin ETFs shortly after their launch.
Bloomberg ETF analyst Eric Balchunas previously commented on the firms protective stance, suggesting that while frustrating, it aligns with Vanguards cooperative-like business model, which does not prioritize maximizing revenue through trendy ETFs.
I know this drives CT crazy but I would just take the L here and move on, Vanguard is not a normal asset manager (constantly hunting for revenue). they more like a co-op, and theyve taken in nearly billion a day for over a decade, and so they not envious of other peoples hit
Eric Balchunas (@EricBalchunas) May 30, 2024
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The post We will not be launching crypto ETFs first appeared on Crypto News.
Text source: Crypto News
