After the U.S. investment advisor Vanguard chose not to offer spot bitcoin exchange-traded funds (ETFs), its CEO Tim Buckley, in a recent discussion, described bitcoin as a speculative asset, unfit for inclusion in long-term investment portfolios.
‘Not a Store of Value’ — Vanguard CEO Labels Bitcoin Too Speculative for Long-Term Portfolios
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Vanguard’s CEO Confirms: No Change in Bitcoin ETF Policy, Cites Speculation Concerns
Reaffirming Vanguard’s perspective on bitcoin during a recent interview, CEO Tim Buckley echoed the sentiments previously expressed by the firm’s global head of ETF Capital Markets and Broker and Index Relations, who labeled it as an “immature asset class.” This reaffirmation came in the wake of the U.S. Securities and Exchange Commission (SEC)’s approval of several spot bitcoin ETFs, which led to Vanguard customers discovering they were restricted from trading these newly introduced funds.
The Vanguard CEO is either absolutely clueless or just tries to control their clients. Neither is good. pic.twitter.com/cQSy2jsGbf
— Gabor Gurbacs (@gaborgurbacs) March 15, 2024
In a detailed discussion on the topic, Buckley made it clear that Vanguard’s stance on not incorporating spot bitcoin exchange-traded funds (ETFs) into their offerings remains firm. Faced with inquiries about a potential change in perspective, Buckley firmly stated, “we don’t plan to.”
“We’re not going to change our minds around this,” Buckley asserted. “Unless the asset class changes … First of all, we don’t believe [a bitcoin ETF] belongs in a long-term portfolio. Someone saving for their retirement. It’s a speculative asset.” The interviewer concurred with Buckley’s assessment of bitcoin as a speculative asset, responding, “That’s exactly it.” Buckley elaborated that Vanguard focuses on investment classes backed by tangible cash flows.
“We mentioned stocks, your buying the forward earnings of a company,” the head of Vanguard explained. He underscored that, in his view, bitcoin does not qualify as a reliable “store of value.” It hasn’t served as one and is marked by extreme volatility, Buckley noted. He highlighted that “Stocks got hammered with recent crises and bitcoin went right with them,” with a hint of irony. Buckley concluded:
So it is speculative and it’s tough to figure out how it belongs in the long-term portfolio.
Buckley is set to step down as chairman and chief executive officer by the end of 2024, marking the culmination of over thirty years with the firm.
What do you think about Vanguard CEO Tim Buckley’s opinion? Share your thoughts and opinions about this subject in the comments section below.
