The CEO of The Vanguard Group, Tim Buckley, has remained firm in his opposition to Bitcoin exchange-traded funds (ETFs) despite facing criticism and inquiries about the company’s plans to offer them. In a recent video published by Vanguard, Buckley expressed his concerns about including Bitcoin ETFs in retirement investment plans, citing the asset’s volatility. He also questioned Bitcoin’s status as a store of value, noting its significant decline during the 2022 stock market crash. Buckley stated that it is difficult to justify including Bitcoin in a long-term portfolio due to its speculative nature.
Bitcoin reached an all-time high of over $69,000 in 2021, surpassing that record with a peak of $73,835. However, it experienced a sharp decline in 2022, dropping to under $16,000. The S&P 500 also fell by 21% in the first half of 2022, with the blame largely placed on the US Federal Reserve’s interest rate increases.
Despite inquiries about when Vanguard might offer spot Bitcoin ETFs, Buckley stated that the company remains steadfast in its decision not to do so unless there are significant changes in the asset class. Vanguard was quick to announce its decision not to offer the product to customers after the US Securities and Exchange Commission approved 11 spot Bitcoin ETFs on January 10. This decision was met with opposition from existing customers, particularly those in the crypto industry. Some customers, like Coinbase’s senior engineering manager Yuga Cohler, expressed their discontent by transferring their savings from Vanguard to approved spot Bitcoin ETF applicant Fidelity.
Although Vanguard has no plans to offer a crypto product, the company still holds significant indirect exposure to Bitcoin as the second-largest institutional holder of MicroStrategy. As of January 12, Vanguard held an 8.24% stake in the company.