Vanguard Group, one of the largest investment advisors in the U.S., has clearly distanced itself from the cryptocurrency realm, asserting that it is not a mature asset class. Following its refusal to join its peers in offering a spot Bitcoin ETF, Vanguard has taken a similar stance on a spot Ethereum ETF.
Vanguard Declines to Offer Spot Ethereum ETF
In a definitive statement, a Vanguard spokesperson told Blockworks, “While we continually assess our brokerage offerings and evaluate new products entering the market, spot ether ETFs will not be available for purchase on the Vanguard platform.”
This announcement came a week after the U.S. Securities and Exchange Commission (SEC) approved 19b-4 filings from various issuers. It is important to note that for spot Ether ETFs to commence trading, the SEC still needs to clear the S-1 registration statements from the fund issuers before the planned product launches can proceed. On Wednesday, May 29, BlackRock submitted a revised S-1 application.
The approval process by the U.S. SEC could take several weeks from now, with most expected to be finalized by July 4. Reflecting on Vanguard’s clear stance on digital assets, the spokesperson remarked:
“We believe that cryptocurrency products do not align with [our services] focused on asset classes such as stocks, bonds, and cash, which Vanguard considers the foundation of a long-term, well-balanced portfolio,” the spokesperson added.
Related: SEC Issues Urgent Warning on Cryptocurrency Fraud
Conversely, Vanguard’s competitor, BlackRock, has emerged as the largest provider of Bitcoin funds with its IBIT Bitcoin ETF. Earlier this month, former BlackRock executive Salim Ramji, who was instrumental in launching the IBIT ETF, joined Vanguard as CEO. Nonetheless, he emphasized his commitment to Vanguard’s existing products and services.
Spot Ether ETF Becoming an Election Issue
Cathie Wood, CEO of ARK Invest, has indicated that the approval of a spot Ethereum ETF is becoming a significant election issue. Initially, some market analysts doubted that the ETF would receive SEC approval. Wood also noted that while a Solana ETF might gain approval, ETFs focused on memecoins are unlikely to get the regulatory green light.
