Pioneer - The Last "Stubborn Old Man"?

When the price of Bitcoin broke through the new high of $111,000 and traditional financial institutions on Wall Street lined up to enter the crypto asset market, investment giant Vanguard firmly distanced itself from crypto assets, prohibiting clients from trading cryptocurrency ETFs on its platform.

According to a report by Blockworks on May 26, BlackRock's iShares Bitcoin Trust (IBIT), the largest asset management company in the world, managed nearly $69 billion in assets as of Wednesday, becoming the fastest-growing ETF in history. However, Vanguard, which manages about $10 trillion in assets, chose a completely different path.

When the first U.S. spot Bitcoin ETFs were launched in January 2024, Vanguard did not participate. When these ETFs began trading, the company stated that its platform would not list these funds. The group also prohibited trading of Ethereum ETFs.

Vanguard stated that crypto ETFs "do not align with our product positioning focused on asset classes such as stocks, bonds, and cash, which are viewed by Vanguard as the foundational elements for building a balanced long-term investment portfolio."

In March of this year, at the Exchange ETF conference, a Vanguard spokesperson reiterated the company's unchanged stance on crypto to Blockworks. The group's founder, John Bogle, once suggested in 2017 that people "avoid Bitcoin like the plague."

In contrast, several Wall Street titans have undergone a 180-degree turn in their attitudes toward cryptocurrencies. BlackRock CEO Larry Fink once referred to Bitcoin as a "money laundering index," but now describes it as "an asset class that protects your assets amid economic uncertainty and geopolitical risks."

Peers Jumping In

According to reports, nearly all major traditional financial institutions are seeking opportunities in cryptocurrencies:

• BlackRock: Launched a private Bitcoin trust in 2022, with spot ETF assets reaching $69 billion in 2024
• State Street Global Advisors: Partnered with Galaxy Digital to launch a diversified actively managed crypto investment portfolio
• Fidelity: Established a digital assets division in 2018, managing about $20 billion in Bitcoin ETF assets
• Franklin Templeton: Launched a BTC ETF and entered the tokenized currency market fund space
• Charles Schwab: Allows investors to buy and sell crypto ETFs on its platform
• Morgan Stanley: Reportedly considering adding cryptocurrency trading on its E*Trade platform

Industry Experts: Vanguard's Choice is "Confusing"

Ric Edelman, founder of the Digital Assets Council, stated that Vanguard's decision to distance itself from crypto products is "confusing" and lacks commercial sense Bitwise Chief Investment Officer Matt Hougan pointed out the irony: Vanguard was once on the opposite side of financial innovation. When Vanguard launched index funds in the 1970s, it was ridiculed by the mainstream asset management industry as "un-American" and "Bogle's folly."

They know what it feels like to deny innovation and then realize their mistake, yet they are repeating the same mistake with cryptocurrency.

However, industry observers also noted that Vanguard's position may change