Vanguard Group, the second-largest issuer of exchange-traded funds (ETFs), has decided to stay out of the cryptocurrency ETF trend, according to its CEO, Salim Ramji.
We will not be launching crypto ETFs, Ramji stated in an interview with ETF.com on August 14.
With nearly $2.7 trillion in assets under management (AUM), Vanguard ranks as the world’s second-largest ETF provider after Blackrock, based on data from stockanalysis.com. Ramji, who previously worked as an executive at Blackrock, took over as Vanguard’s CEO on May 14, succeeding former chief Tim Buckley.
I’m not going to copy competitors. It’s important that a company stays true to its identity, Ramji said.
Vanguard’s decision is noteworthy amid a wave of crypto ETF launches by major ETF providers, including Blackrock. In January, Blackrock introduced the iShares Bitcoin Trust (IBIT), followed by the iShares Ethereum Trust (ETHA) in July. These funds now hold approximately $21 billion and $800 million in AUM, respectively, according to Morningstar.
Read more: 10x Research Predicts Stablecoin Growth May Catalyze Bitcoin’s Next Price Surge
Bitcoin ETFs have seen record-breaking inflows in 2024. “The funds have experienced more than three times the largest one-year inflow of any ETF ever in the history of ETFs,” said Dave LaValle, Grayscale’s global head of ETFs, on August 12. “We’re witnessing massive adoption.
The acceptance of crypto ETFs by established financial institutions like Morgan Stanley has validated the asset class for investment managers and expanded its potential reach.
Many large investors, such as sovereign wealth funds and pension funds, are ready to invest in ETFs, Katalin Tischhauser, head of investment research at crypto bank Sygnum, told Cointelegraph. Crypto will eventually become a component of model portfolios, with products tailored to different risk profiles.
Vanguard plans to distinguish itself by focusing on products aimed at protecting investors from downside risks.
We have been very focused on helping clients accumulate assets, but the industry hasn’t done much to help on drawdowns, Ramji said: “I want to focus on new products like retirement income and other drawdown strategies with a range of tools and advice.”
Cre: cointelegraph
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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