According to Bloomberg, amid the trending #BoycottVanguard on social media, Vanguard Group has doubled down on its stance against cryptocurrency products. The asset management giant, which controls $8.6 trillion, has not only snubbed Bitcoin-spot products but also removed futures-backed Bitcoin funds from its platform. As a result, Vanguard now offers no crypto products, unlike its industry peers.
This decision reflects Vanguard's deeply entrenched investing philosophy, which dates back to its founder, John Bogle. The firm, established in 1975, focuses on investing in stocks and bonds that generate cash flow, dividends, and interest payments while avoiding commodities. Vanguard has traditionally steered clear of commodities, which are seen as lacking intrinsic value and an internal rate of return.
Despite the recent launch of spot Bitcoin ETFs attracting billions of dollars, Vanguard has no plans to offer any crypto-related products, according to a spokesperson. This rejection of crypto contrasts sharply with the actions of its industry peers, fueling online criticism against the company. However, industry experts believe that the #BoycottVanguard movement is unlikely to significantly impact the firm's business.
Vanguard continues to attract substantial investments, with approximately $4.4 billion added to its 84 ETFs in the past week alone. In 2023, the company attracted $157 billion, more than any other asset manager. Vanguard has grown its share of the $8 trillion ETF market for 21 consecutive years. While avoiding crypto ETFs may pose a long-term risk if it deters younger investors, this risk is considered small compared to Vanguard's loyal customer base.