Business Markets News Report
December 08, 2023

Vanguard and State Street Opt Out of Bitcoin ETF Frenzy

Vanguard and State Street Opt Out of Bitcoin ETF Frenzy

As the excitement over potential U.S. approvals for spot Bitcoin ETFs reaches its peak, two major players in the exchange-traded fund (ETF) industry, Vanguard Group and State Street Corp., are noticeably absent from the race.

While BlackRock Inc. made headlines with its Bitcoin ETF application, Vanguard and State Street have decisively chosen to stay out of the cryptocurrency ETF market.

Vanguard, renowned for its passive, low-cost ETFs, has made it clear that it has no plans to offer a spot Bitcoin ETF or any crypto-related products. The firm’s stance is rooted in the belief that cryptocurrencies, unlike traditional assets like stocks and bonds, lack intrinsic economic value and do not generate cash flows.

Vanguard emphasizes that the high volatility of cryptocurrencies contradicts their goal of helping investors achieve positive real returns over the long term.

Decoding the Drama of Bitcoin ETF Investments

State Street while not as emphatically opposed to the idea of a crypto ETF, remains cautious. The firm, which houses the $57 billion SPDR Gold Shares (GLD) ETF, has stated that it is continuously evaluating its lineup but currently does not offer a crypto ETF.

This approach is noteworthy considering Bitcoin’s comparison to digital gold and the recent parallel movement in the prices of Bitcoin and bullion.

Both Vanguard and State Street have a history of abstaining from hyped investment trends. In 2020, they chose not to participate in the active, non-transparent ETF market, a decision that later seemed prudent as these funds did not meet the initial high expectations.

With the Securities and Exchange Commission (SEC) facing a deadline in early January to announce its decision on Bitcoin ETFs, the industry watches closely.

While some firms eagerly await the possibility of introducing Bitcoin ETFs, Vanguard and State Street’s decision to sit out the race reflects a more conservative and traditional approach to investment products.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

More articles
Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Hot Stories

Top 10 Crypto Games to Invest in 2024

by Gregory Pudovsky
February 27, 2024
Join Our Newsletter.
Latest News

NFTs & Mining: A Digital Synergy

The rise in usage of the non-fungible tokens has changed the way we see and engage with ...

Know More

AI in Crypto

Explore the ever-evolving realm of artificial intelligence within the cryptocurrency sphere. Discover the transformative impact of AI ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Aerodrome Finance’s AERO Witnesses 127% Surge after CB Ventures’ Token Acquisition
Business News Report
Aerodrome Finance’s AERO Witnesses 127% Surge after CB Ventures’ Token Acquisition
February 27, 2024
Validation Cloud Raises $5.8M Funding to Accelerate Web3 Enterprise Adoption
Business News Report
Validation Cloud Raises $5.8M Funding to Accelerate Web3 Enterprise Adoption
February 27, 2024
Bitcoin Bulls Set Sights on $60K Milestone After Driving Price Rally to $57K in Monday Surge
Markets News Report
Bitcoin Bulls Set Sights on $60K Milestone After Driving Price Rally to $57K in Monday Surge
February 27, 2024
Fluence Launches FLT Token on Ethereum Mainnet Alongside Cloudless Computing Platform
Markets News Report
Fluence Launches FLT Token on Ethereum Mainnet Alongside Cloudless Computing Platform
February 27, 2024
What You
Need to Know

Subscribe To Our Newsletter.
Daily search marketing tidbits for savvy pros.