Vanguard CEO Rules Out Bitcoin ETF, Stresses Long-Term Investment

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 plans to pursue a Bitcoin (BTC) spot Exchange Traded Fund (ETF).

Vanguard to Focus on Core Values

Buckley’s firm stance on this issue was clear as he stated:

“We won’t be pursuing a Bitcoin ETF, just like we don’t use gold as an asset class for our clients.”

He elaborated on Vanguard’s investment philosophy, which centers on asset classes with intrinsic value and cash flows. According to him, Bitcoin, like gold, doesn’t align with their criteria for long-term investments.

During the interview that took place at Vanguard’s headquarters in Pennsylvania, Buckley shared his insights on the current state of stock and bond markets, as well as the behavior of investors in the face of rising interest rates. His core 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 hovers 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 require a steady income stream from bonds alongside the growth potential of equities.

Vanguard’s approach has consistently revolved around 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) edging closer to potentially approving 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 the regulatory green light is given.

Michael Saylor, the Co-Founder and CEO of MicroStrategy Inc (NASDAQ: MSTR), holds a particularly 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 its 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, a move the firm noted when complemented by the upcoming Bitcoin halving expected in April, BTC price may go parabolic.

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2023-11-06 15:30