Vanguard Shuns Bitcoin ETFs, Faces Social Media Backlash From Crypto Enthusiasts: ‘Have Fun Staying Poor’

Vanguard defied the crypto fever sweeping Wall Street with the first-ever U.S. spot Bitcoin (CRYPTO: BTC) ETFs by refusing to offer a fund of its own.

The investment giant, known for its conservative, long-term approach, declared bitcoin “too volatile” and refused to offer any of the new funds, sparking backlash and ridicule on X (formerly Twitter).

Vanguard’s customer service representative explained that Bitcoin ETFs were considered “highly speculative” and “unregulated,” which conflicts with the company’s philosophy of promoting long-term investing, according to The Block.

The platform also refrains from offering other high-risk investments like leveraged ETFs.

When asked for a comment, a Vanguard spokesperson told Benzinga that the company’s perspective is that these products do not align with its current offerings focused on asset classes such as equities, bonds, and cash, which Vanguard views as the building blocks of a well-balanced, long-term investment portfolio.

“While we continuously evaluate our brokerage offer and evaluate new product entries to the market, spot Bitcoin ETFs will not be available for purchase on the Vanguard platform.  We also have no plans to offer Vanguard Bitcoin ETFs or other crypto-related products,” the spokesperson said.

Customers attempting to purchase BlackRock’s (NYSE:BLK) IBIT ETF on Vanguard’s platform were met with a notification that the trade could not be completed due to various reasons, including regulatory restrictions and trading limitations.

This contrasts with other brokerages like Charles Schwab (NYSE:SCHW) and Fidelity, where clients were able to buy the new spot bitcoin ETFs.

“I called them and they said they will NOT be offering ANY of the Bitcoin ETFs,” tweeted Neil Jacobs, a Vanguard account holder. “I’m working on transferring assets out and closing my account. Terrible business decision!”

Other tweets echoed the sentiment, with terms like “dinosaur,” “Blockbuster,” and “missing the boat” raining down on Vanguard’s logo.

“Have fun staying poor Vanguard,” quipped The Bitcoin Therapist, capturing the sentiment among many Bitcoin enthusiasts.

Read Also: Bitcoin On Wall Street, Outcast in Seoul: South Korea Shows Crypto Cold Shoulder Amidst US ETF Boom

Vanguard’s position on not offering Bitcoin ETFs reflects a cautious approach toward the rapidly evolving cryptocurrency market, prioritizing long-term stability over short-term gains.

However, this stance has not resonated well with a segment of its client base, who view this as a missed opportunity in the burgeoning field of digital assets.

Read Next: SEC’s Historic Bitcoin ETF Approval Reveals Deep Divide Within Commission

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