- The action has been deemed “terrible” by Ark Invest founder Cathie Wood.
- Vanguard has maintained its firm position on not offering Bitcoin ETF trading.
The U.S SEC’s approval of the Bitcoin ETF was a watershed decision. Having said that, Vanguard has maintained its firm position on not offering Bitcoin ETF trading. This action has been deemed “terrible” by Ark Invest founder Cathie Wood.
Ark Invest CEO Cathie Wood has criticized Vanguard for their unwillingness to engage with digital assets. According to Wood’s interview with Yahoo Finance, Vanguard’s decision to exclude Bitcoin ETFs from its client portfolios is a “terrible” move. She went on to say that investors would be denied access to history’s first worldwide decentralized monetary system by Vanguard, among other things.
Major Client Churn
The SEC recently approved 11 spot Bitcoin ETFs in the U.S, one of which is ARK 21Shares led by Cathie Wood. Earlier, Vanguard had stated its intention to avoid cryptocurrency investments. Brokerage services offered by Vanguard do not include bitcoin futures products, and the company does not participate in spot bitcoin exchange-traded funds.
A spokesperson from Vanguard has already explained to Axios that this decision is in line with the company’s overall strategy. Major client churn occurred when Vanguard maintained its “no crypto” stance. Due to Vanguard’s strict restriction, many consumers were closing their accounts and moving to other brokerage companies that do provide exposure to Bitcoin ETFs.
Many people took to social media to express their disapproval of Vanguard’s decision. The fact that the platform of the financial giant does not provide bitcoin products was a source of frustration for many. Many Bitcoin proponents have also requested that friends and acquaintances move their 401(k) funds from Vanguard to rival firms like Fidelity.
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Source: https://thenewscrypto.com/ark-invests-cathie-wood-slams-vanguard-over-bitcoin-etf-snub/