Vanguard, an asset management firm, has chosen not to join its competitors in the pursuit of a Bitcoin exchange-traded fund (ETF). While rivals like BlackRock and Fidelity have pending applications for Bitcoin ETFs, Vanguard’s CEO, Tim Buckley, revealed in a recent CNBC interview that his firm has no intentions of doing so.

“We won’t be pursuing a Bitcoin ETF. It’s similar to how we don’t include gold as an asset class for our clients,” he explained. “It’s not that people can’t invest in it. We focus on asset classes that belong in a long-term portfolio, those with intrinsic value and cash flows. Bitcoin and other stable assets aren’t part of our approach.”

Vanguard’s Stance on Cryptos’ Value

A representative from Vanguard provided additional insight into the company’s viewpoint in a statement to Insider, reiterating their skepticism about cryptocurrencies.

The spokesperson remarked, ‘Unlike stocks and bonds, the majority of cryptocurrencies lack intrinsic economic value and do not yield cash flows, such as interest payments or dividends.’ They also highlighted the high volatility exhibited by cryptocurrencies, which contradicts Vanguard’s objective of delivering positive real returns to investors over time.

The regulatory landscape surrounding cryptocurrencies has been a source of contention, as the SEC had previously rejected several Bitcoin ETF applications. Nevertheless, Grayscale Investments recently secured a legal victory against the SEC, raising optimism that regulatory barriers may soon be overcome, potentially leading to the approval of a spot Bitcoin ETF.