Jan 12, 2024 - Business

Exclusive: Vanguard to pull bitcoin futures from its platform

Vanguard is doubling-down on its "no-crypto" stance in investing, saying it will not only sit out the rush into spot bitcoin ETFs, but also yank existing bitcoin futures products from its brokerage offerings.

Why it matters: The asset management giant is moving away from bitcoin, even as other Wall Street titans move in. Shops like BlackRock, Invesco and Fidelity recently launched their own branded bitcoin ETFs.

What they're saying: "In addition to spot Bitcoin ETFs not being available for purchase on the Vanguard platform, effective immediately, Vanguard will no longer accept the purchase of cryptocurrency products, including Bitcoin futures ETFs," a spokesperson for Vanguard tells Axios.

  • "This change allows us to focus on offering a core set of products and services consistent with our commitment to serve the needs of long-term investors," they said.

Between the lines: Vanguard is going to Vanguard. The firm has hardly kept its jaundiced views on crypto a secret; its long-term investment philosophy hews more closely to old-school value investors than the nouveau-riche enthusiasts who've jumped into digital coins.

State of play: Vanguard's step away from bitcoin follows a social media kerfuffle on Thursday. Some folks claiming to be customers complained about the newly minted offerings not being available on the platform.

Context: What Vanguard is doing aligns with its brand identity, rooted in its late founder Jack Bogle's investing principles, which champions simple, low-cost investing over speculation.

Our thought bubble: Bitcoiners who take a closer look at Vanguard might have offer more respect: Bogle was the original contrarian.

  • When his index fund invention ridiculed as "un-American", he dug in, positing that buying the whole S&P 500 was better for returns in the long-run.

The bottom line: It's no real surprise that Vanguard is going in the opposite direction of some of its peers. That's how you stand out.

This is a developing story and we will update it.

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