Vanguard Blocks Customers from Investing in Bitcoin ETFs

Vanguard, a global giant in asset management, has decided to prohibit customers from purchasing recently approved bitcoin ETFs.

Trying to invest in BlackRock’s iShares Bitcoin Trust (IBIT) or Grayscale Bitcoin Trust (GBTC) through a Vanguard retirement brokerage account triggered a warning stating that the trade could not be completed.

The message states, “Buy orders are not currently accepted for this security.” It goes on to explain that securities might be unavailable for purchase at Vanguard due to factors such as regulatory restrictions, corporate actions, or various trading and/or settlement limitations.

According to a Vanguard spokesperson speaking to CoinDesk, “spot Bitcoin ETFs will not be available for purchase on the Vanguard platform.” The spokesperson clarified that Vanguard has no intentions of offering Bitcoin ETFs or other crypto-related products, citing a misalignment with the asset manager’s focus on asset classes contributing to a well-balanced, long-term investment portfolio.

Vanguard’s intention to block bitcoin ETFs was initially reported by The Block.

Vanguard’s reluctance stands in stark contrast to the enthusiastic adoption of bitcoin ETFs by some major competitors like BlackRock, Fidelity, and Invesco. These companies successfully launched bitcoin ETFs that commenced trading on Thursday after receiving approval from the U.S. Securities and Exchange Commission on Wednesday.

Charles Schwab, a different brokerage, confirmed on Thursday that it is allowing customers to trade bitcoin ETFs.

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