tl;dr
Vanguard's decision to block customer access to Bitcoin ETFs has sparked a backlash, leading to an exodus of customers and accusations of manipulating the price of Bitcoin. Analysts and investors have accused the firm of engaging in shady operations, and other investment firms are also refusing to a...
Vanguard's decision to block customer access to Bitcoin ETFs has sparked a backlash, leading to an exodus of customers and accusations of manipulating the price of Bitcoin. Analysts and investors have accused the firm of engaging in shady operations, and other investment firms are also refusing to allow customers to buy Bitcoin ETFs. Cinneamhain Ventures partner Adam Cochran has alleged questionable dealings at Vanguard, questioning the firm's investment policy and moral high ground. It remains to be seen whether the company will lose enough business over its policies to force a rethink, as it claims to have had over 50 million investors as of December 31, 2022.
One of the world’s largest investment companies, Vanguard, is in the spotlight following its blocking of customer access to publicly listed, SEC-approved Bitcoin ETFs. Not only are clients jumping the Vanguard ship, but more eye-opening revelations are emerging. On January 11, investment giant Vanguard decided not to offer its customers recently approved spot Bitcoin ETPs. The move sparked a wave of backlash and more revelations of shadowy operations at the company. The customer exodus has already commenced, with FOMO 21 co-founder Neil Jacobs stating, “I’m working on transferring assets out of there and then I will close my Vanguard account. Terrible business decision by Vanguard.” Lead market analyst at Swan, Sam Callahan, advised his 24,500 X followers how to transfer their accounts out of Vanguard, and NFT collector ‘yugacohler’ said, “I have 8 years worth of 401K savings at Vanguard from my time as an employee at Google. I will be rolling over these funds to Fidelity.” Former Vanguard client Vanessa Harris said she had just fully transferred her retirement account from Vanguard to Fidelity “because Vanguard won’t support Bitcoin ETFs.” However, she added that the firm “appears to be manipulating the price of Bitcoin by only allowing people to sell GBTC, not buy.” This was also highlighted by analyst and investor Scott Melker, who said something was fishy. Vanguard is now taking some “weird moral high ground to overrule user sovereignty and be some prescriptive parent,” Adam Cochran added.
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