Cryptocurrencies

said the new CEO of the American investment company Vanguard

The new CEO of US investment giant Vanguard has said he will not reverse the company’s decision not to launch a Bitcoin (BTC) spot trading fund.

Vanguard’s new CEO Salim Ramji, the former head of BlackRock’s global ETF business, told Barron’s in an interview published May 15 that Vanguard stands for consistency and that cryptocurrency-related investment products do not fit its “ investment philosophy”.

“I think it’s important for companies to be consistent in terms of the products and services they provide,” Ramji said.

“I’ve heard (Chief Investment Officer) Greg Davis’ explanation and I think it’s perfectly consistent with Vanguard’s investment philosophy. “It is a logical and consistent point of view.”

Ramji oversaw the January launch of BlackRock’s bitcoin ETF, the iShares Bitcoin Trust (IBIT), which has amassed $18 billion in assets under management.

He has publicly expressed an interest in cryptocurrencies, and his move to Vanguard has industry watchers speculating about changes he is making at the company.

Salim Ramzi. Source: Vanguard

Along with BlackRock’s ETF launch, its rivals, including Fidelity and nine other investment managers, also launched Bitcoin spot funds, which collectively saw more than $12 billion in net inflows.

Vanguard, which has $8.6 trillion in assets under management, took a different approach and did not launch a Bitcoin ETF, viewing cryptocurrencies as a speculative investment and an immature asset class.

Bloomberg ETF analyst James Seyfarth said in a May 15 note that he doesn’t believe Ramji will launch a Bitcoin ETF at Vanguard.

However, Seyfarth said Ramji could change the firm’s stance by not allowing its clients to buy Bitcoin ETFs on its brokerage platform.

Outgoing Vanguard CEO Tim Buckley said in March that he doesn’t believe a bitcoin ETF belongs in the long-term portfolio of someone saving for retirement because it’s a speculative asset.

His comments followed customer pressure following the launch of Bitcoin ETFs by rival firms.

Related to: JPMorgan has disclosed that it owns stakes in several bitcoin ETFs

In January, a number of Vanguard customers threatened to close their accounts after the company blocked access to Bitcoin exchange-traded funds.

Meanwhile, Vanguard has indirect exposure to Bitcoin through its stake in MicroStrategy, where it is the second-largest institutional shareholder.

Rival investment firms are celebrating again as flows turn positive following Bitcoin’s 7% move back to $66,000 on May 16.

According to preliminary data from Farside Investors, net inflows to all U.S. bitcoin ETFs totaled more than $300 million on May 15, excluding BlackRock’s IBIT, whose results have yet to be announced.

magazine. Memes: Betraying the ideals of cryptocurrencies or their true purpose?

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