Vanguard CEO Rejects Bitcoin ETF, Emphasizes Long-Term Investment
As the US SEC moves closer to potential approval of a Bitcoin ETF, experts and industry leaders are sharing their predictions on the impact this milestone could have on the crypto market.
In a recent interview on CNBC’s ‘The Exchange’, Tim Buckley, Chairman and CEO at Vanguard Group, the world’s second-largest asset manager, stated that the company has no intention of pursuing a Bitcoin (BTC) spot Exchange Traded Fund (ETF).
Vanguard to Prioritize Core Values
Buckley made it clear that his firm is firm on this issue:
“We have no plans to pursue a Bitcoin ETF, just like we don’t use gold as an asset class for our clients.”
He explained Vanguard’s investment philosophy, which focuses on asset classes with intrinsic value and cash flows. According to him, Bitcoin, like gold, does not align with their criteria for long-term investments.
During the interview at Vanguard’s Pennsylvania headquarters, Buckley shared insights on the current state of stock and bond markets, as well as investor behavior in the face of rising interest rates. His main message to investors was to “stay the course,” a principle that has consistently proven successful in various market conditions.
In a world where the ten-year outlook for US stocks is around 5% per year and bonds yield similar returns, the temptation for investors is to hold cash. However, Buckley cautioned against this strategy, citing the income risk associated with missing out on potential gains from bonds and stocks if the Federal Reserve cuts rates.
Buckley emphasized the importance of maintaining a long-term perspective and avoiding market timing, which he believes is a mistake. Regarding the traditional 60/40 split between stocks and bonds, Buckley reaffirmed that the fundamentals of investing remain steadfast. Investors need a steady income stream from bonds alongside the growth potential of equities.
Vanguard’s approach has always been about understanding an individual’s risk profile and maintaining a long-term investment strategy. Buckley noted that the company’s investors tend to stay committed to this approach, making minimal adjustments to their portfolios, even during turbulent times.
Anticipation Grows as SEC Approval of Bitcoin ETF Nears
With the US Securities and Exchange Commission (SEC) nearing potential approval of a Bitcoin ETF, experts and industry leaders are offering their predictions on the potential impact of this milestone on the crypto market. Speculations abound about the influx of institutional capital that could flood into the Bitcoin space once regulatory approval is given.
Michael Saylor, the Co-Founder and CEO of MicroStrategy Inc (NASDAQ: MSTR), holds an optimistic outlook on the future of Bitcoin. Saylor believes that once the SEC grants approval for a spot Bitcoin ETF, the leading cryptocurrency could experience a tenfold increase in value.
Bernstein Research also joins the chorus of optimism regarding the SEC’s potential approval of a spot Bitcoin ETF. The firm contends that the regulatory decision may come as early as January 10, driven by various factors. When complemented by the upcoming Bitcoin halving expected in April, BTC price may go parabolic.