New Vanguard CEO: "We're not going to launch crypto-ETFs"

A few weeks ago, Salim Ramji started as the new boss of the world's second-largest asset manager. Because of his Bitcoin-friendly image, many people were hoping for a change in direction regarding crypto-ETFs. Unlike competitors such as BlackRock or Fidelity, Vanguard has so far had a clear anti-Bitcoin stance. They did not even let their clients trade other providers' Bitcoin ETFs.

New CEO Ramji had personally overseen the approval and launch of BlackRock's super successful Bitcoin ETF, the iShares Bitcoin Trust, before he left in January to join Vanguard's biggest rival.

Now, however, the new man at the top is disappointing many crypto fans, at least for now. "We are not going to set up crypto-ETFs," Ramji said in an interview with ETF.com last Wednesday. "I'm not going to copy the competition. It's important for a company to stay true to its own identity," Ramji further explained. So despite the enormous success of Bitcoin ETFs and the frustration of many customers, Vanguard remains stubborn. A key reason for this: The very elderly Vanguard founder John Bogle still warned in the fall of 2017, two years before his death, to "avoid Bitcoin like the plague." The current leadership still follows his advice.

As a result, Vanguard is missing a profitable opportunity, as $20.3 billion and $9.7 billion have already flowed into the Bitcoin ETFs of rivals BlackRock and Fidelity within seven months, respectively.

What does give hope: Even without getting directly into the Bitcoin ETF game, Vanguard might still be able to give its clients access to existing BTC index funds in the medium to long term. That could bring new capital into the market.