Vanguard, one of the world’s largest asset management companies, does not allow Bitcoin ETF trading — inconsistent with its policy of emphasizing long-term investment | CoinDesk JAPAN

Vanguard, one of the world’s largest asset management companies, will no longer allow customers to buy Bitcoin ETFs, which were approved on Tuesday.

When you try to purchase BlackRock’s iShares Bitcoin Trust (IBIT) or Grayscale Bitcoin Trust (GBTC) through your Vanguard retirement brokerage account, you will receive the message “Transaction completed.” “trade cannot be completed” warning appears.

Vanguard warning screen (Vanguard)

“This security is not currently accepting buy orders. Securities may not be available for purchase on Vanguard due to a variety of factors, including regulatory restrictions, corporate actions, or various trading and settlement restrictions.” (Vanguard warning screen)

“Spot Bitcoin ETFs are not available for purchase on the Vanguard platform,” a Vanguard spokesperson told CoinDesk, adding that the company has no plans to offer Bitcoin ETFs or other crypto-related products. He continued that the decision was made because crypto-related products do not align with the company’s policy of prioritizing asset classes that “can build a balanced long-term investment portfolio.”

Vanguard’s negative stance is in contrast to the Bitcoin ETFs of its rivals, including BlackRock, Fidelity, and Invesco. BlackRock, Fidelity, and Invesco began trading Bitcoin ETFs on the 11th, the day after approval.

Charles Schwab, a major U.S. securities firm, also confirmed on the 11th that customers can now trade in Bitcoin ETFs.

Regarding the possibility of handling Bitcoin ETFs in Japan, there are regulatory and tax issues. Tomohiko Kondo, CEO of SBI VC Trade and Chairman of the Financial Department of the Japan Crypto Asset Business Association (JCBA), said in an interview with CoinDesk JAPAN that “There are many matters that need to be sorted out.For example, there are many things that need to be sorted out. Can I bring in a Bitcoin ETF that was created overseas, or should I create a crypto asset ETF domestically?There is also the issue of taxation.ETFs are financial products, and individuals may be subject to separate taxation. “On the other hand, physical crypto asset transactions are subject to comprehensive taxation, so naturally there will be calls for consistency.”

Related article: What is the possibility of Bitcoin ETF in Japan?

｜Translation/Editing: CoinDesk JAPAN Editorial Department
｜Image: Shutterstock