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Vanguard's CEO Stands Firm Against Bitcoin ETFs Despite Pressure

Vanguard's CEO remains resistant to Bitcoin ETFs, citing volatility and unsuitability for long-term portfolios, despite customer demands and industry trends.

Vanguard Group's CEO, Tim Buckley, is holding steadfast in his resistance to Bitcoin exchange-traded funds (ETFs) despite customer demands and ongoing inquiries about the firm's stance. In a recent video, Buckley reiterated his caution against including Bitcoin ETFs in retirement portfolios due to the asset's volatility, labeling it as speculative and unsuitable for long-term investment strategies.

Buckley pointed out that Bitcoin's value is not stable, citing its significant decline during the stock market crash of 2022, which contradicts its perceived status as a store of value. Despite Bitcoin reaching new all-time highs, including its recent peak of $73,835, Buckley emphasized the digital currency's price history, noting its drop to $16,000 in 2022.

Vanguard's decision not to offer Bitcoin ETFs came after the U.S. Securities and Exchange Commission approved 11 spot Bitcoin ETFs on Jan 11. Despite customer backlash, including threats to move investments to competitors like Fidelity, Vanguard remains firm in its stance, stating that it will not offer Bitcoin ETFs unless the asset class fundamentally changes.

It's worth noting that Vanguard indirectly holds a significant stake in Bitcoin through its investment in MicroStrategy, where it is the second-largest institutional holder with an 8.24% stake. Despite this indirect exposure, Vanguard maintains its position against directly offering Bitcoin-related products to its customers.