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05 February 2024
Vanguard called Bitcoin an immature asset class

Investment company Vanguard has confirmed its decision not to launch Bitcoin exchange-traded funds (ETFs), stating that this type of cryptocurrency is considered an “immature” asset and does not align with the company’s strategy.

Janelle Jackson, Director of Capital Markets Development at Vanguard Global, elaborated on the company’s position regarding digital assets. According to her, despite Bitcoin being formally considered a commodity, it is an asset lacking sufficient history, internal economic value, devoid of cash flow, and capable of causing chaos in an investment portfolio.

Jackson emphasized that Vanguard has no plans to introduce Bitcoin ETFs or other cryptocurrency-related products, considering the current situation in the crypto market. The company adheres to a rigorous decision-making process regarding new investment products, prioritizing long-term investment benefits.

Andrew Kaczynski, Director of Brokerage Operations and Investments at Vanguard, noted that the majority of the company’s investors are long-term investors. Therefore, even if clients can easily access cryptocurrency products, such a move would contradict Vanguard’s mission, focused on meeting the needs of long-term investors.

Nevertheless, the company’s stance, focused on traditional assets such as stocks, bonds, and cash, has disappointed some Vanguard clients. Industry experts also speculated that this decision does not align with the current market trend, where many investors seek access to digital assets.

It’s worth recalling that last year, Vanguard Group increased its investments to over $500 million in companies involved in Bitcoin mining. In 2020, the company successfully tested a blockchain-based securities settlement system.