American Investment management company Vanguard Group is currently facing severe backlash after reportedly rejecting customers’ requests to access and trade Spot Bitcoin ETFs on the platform.
Vanguard Experiences Mass Customer Exodus
The recent approval of Spot Bitcoin ETFs on Wednesday, January 10, has set off a surge in trading activities among numerous investors. Consequently, investment management companies like BlackRock have experienced a surge in transactions.
Despite the excitement surrounding the debut of these Spot BTC ETFs, customers with brokerage accounts at Vanguard, one of the world’s most respected investment advisors, were unable to participate in the trading process due to restrictions placed by Vanguard.
As a result, a considerable number of customers holding accounts with the investment management company have opted to withdraw their funds and close their accounts permanently.
Vanessa Harris, a former Vanguard customer, expressed her frustration on X (formerly Twitter) regarding Vanguard’s recent limitations preventing customers from trading Spot BTC ETFs on the platform.
“Just fully transferred my retirement account from Vanguard Group to Fidelity because Vanguard won’t support Bitcoin ETFs, and appears to be manipulating the price of Bitcoin by only allowing people to sell GBTC, not buy,” Harris stated.
Another X user suggested that individuals withdraw from Vanguard and move to BTC-friendly alternatives like Fidelity to start their Spot Bitcoin ETF trades.
Vanguard’s decision to stay on the sidelines of Spot Bitcoin ETFs is seen as a missed opportunity to cater to the evolving preferences of their customers. Despite the mass withdrawals, the investment management company has not indicated any intention to reconsider its current policy against Spot BTC ETFs.
Vanguard To Ban All Bitcoin ETFs On Its Platform
Senior ETF Analyst at Bloomberg, Eric Balchunas has recently taken to X to announce that Vanguard has banned all Spot BTC ETFs from their platform. Despite the growing popularity of cryptocurrency investments, Vanguard still does not endorse investments in BTC or other cryptocurrencies on its platform.
The investment management company is known to have a contentious relationship with cryptocurrencies including BTC, the world’s largest cryptocurrency. In 2017, the late founder of Vanguard, John C. Bogle advised people to “avoid Bitcoin like a plague.”
“Spot Bitcoin ETFs will not be available for purchase on the Vanguard platform. We also have no plans to offer Vanguard Bitcoin ETFs or other crypto-related products,” the investment management company stated.