Yahya 
Salim Ramji, the new boss at Vanguard, affirmed Vanguard’s stand against the launching of a spot-based Bitcoin ETFs (exchange-traded fund) and that such an act is aligned to the investment philosophy the firm has always followed. The May-15 Barron’s interview featured the head of the crypto unit at Visa, whereby he explained that crypto products do not comply with the principles the company has abided by for many years.
Adhering to Investment Philosophy
“I believe that firms should exhibit consistency in terms of what they stand for and the products and services they offer,” Ramji said. Ramji, who joins Vanguard as the new CIO on July 8, fully supported the arguments made by the firm’s main investment officer, Greg Davis, who previously discussed the firm’s rationale. “I have heard Greg Davis` explanation and I think that is line with Vanguard investment philosophy. Even given the counter logic the investment philosophy is on point”- concluded Ramji.
Industry Reactions and Speculations
Although he was previously the head of BlackRock asset management, which oversaw the launch of the iShares Bitcoin Trust (IBIT) — that, at the moment, is worth $18 billion — Ramji’s style at Vanguard remains conservative. Vanguard’s $8.6 trillion in assets under management outlines a conservative path of views on Bitcoin as a pure speculative commodity being very young and immature.
April 15th, Bloomberg ETF analyst Jim Seyffert’s observation is that it is peculiar for Ramji to launch a Vanguard spot Bitcoin ETF, since according to him, such is improbable. Seyfert in fact pointed to a possible shift in the policy where Vanguard clients would be able to purchase spot Bitcoin ETFs different from Vanguard via the company’s brokerage platform which would be the major but partial policy change.
Customer Pressures and Indirect Exposure
The month of January was a challenge to Vanguard, as some of the investors complained to the company intending to close their accounts because Vanguard’s policies on Bitcoin exchange traded fund were too restrictive. In spite of the indirect exposure from this Bitcoin, it is however not as though the Vanguard does not hold a substantial position in MicroStrategy through its stake, as its company is the second-largest institutional shareholder.
The reluctant wit of the outgoing CEO Tim Buckley back in March saying that Bitcoin ETF belongs to the short-term portfolio due to the highly speculative structure. The sentiment was uttered by Vanguard as a way of restricting investors from what they view as risky investments, whereas sometime back, there was growing pressure and mounting of capitalism within the investment sector.