Vanguard, the world's second-largest asset manager, said it had no plans to launch a Bitcoin spot ETF, judging Bitcoin to be an 'immature asset' with no intrinsic economic value. Janelle Jackson, head of global ETF capital markets at Vanguard, said Bitcoin and other cryptocurrencies are not suitable for inclusion in long-term portfolios amid the growing cryptocurrency discourse. Bitcoin and other cryptocurrencies have a short history and no intrinsic economic value or cash flow, he said, arguing that they could cause chaos within Vanguard's portfolio. Additionally, Andrew Kazewski, head of investments at Vanguard, stated that Vanguard's investor mix and the product reflecting the Bitcoin spot ETF do not match. Vanguard's investor base consists mainly of long-term investors, so he emphasized that it must faithfully reflect customer interests.
Additionally, Vanguard manages its assets with a long-term perspective, and this has been the case in the past. Even during the height of the dot-com bubble in the 1990s, internet funds were not introduced, and recently, they stopped providing over-the-counter stocks due to high risk and low liquidity. This approach has helped Vanguard maintain a stable and conservative image.
However, some analysts predict that Vanguard may eventually change its stance due to the rise of more digital assets and pressure from competitors. These predictions suggest that Vanguard may adopt new strategies that take digital assets and cash flow into account in the future. Of course, it is unknown what decision will be made, but Vanguard's change in position is expected to have a significant impact on the cryptocurrency market.
