According to Eric Balchunas, a senior ETF analyst, Vanguard has absorbed approximately $30 billion in inflows since the launch of Bitcoin ETFs, a figure six times greater than what Bitcoin ETFs have achieved.
This influx underscores Vanguard’s dominance in traditional finance (TradFi), despite the crypto sector’s rapid growth and the significant attention Bitcoin ETFs have garnered.
Vanguard’s steadfast approach to investment, deeply rooted in the principles set forth by its late founder, Jack Bogle, has led to a pointed refusal to engage with the cryptocurrency market, including Bitcoin ETFs.
This decision sparked considerable debate within the crypto community, culminating in a #BoycottVanguard movement on social media platforms. Despite this backlash, Vanguard’s position remains unchanged, with the firm pulling even futures-backed Bitcoin funds from its platform.
This move shows Vanguard’s commitment to Bogle’s vision of investing in assets that generate tangible returns, such as dividends and interest payments, and its skepticism towards commodities and assets it views as speculative, like cryptocurrencies.
Vanguard’s conservative stance on investment is not merely a reaction to market trends but a reflection of a deeply ingrained philosophy.
The firm’s exclusion of crypto-related products from its offerings is consistent with its focus on long-term, value-generating assets over speculative investments. Vanguard’s approach is characterized by a rigorous screening process for new products, emphasizing investment merit, client needs, competitive advantage, and feasibility.
Despite the allure of blockchain technology and its potential to enhance capital market efficiency, Vanguard remains cautious, prioritizing the interests of its long-term investor base over the speculative nature of current crypto offerings.