Vanguard CEO: Bitcoin Lacks Value as a Storage Tool, No Plans for Bitcoin ETF

Vanguard, one of the world’s largest ETF issuers and the founder of index funds, recently announced on its official website a conversation between its current CEO, Tim Buckley, and investor Greg Davis. Tim Buckley emphasized that Bitcoin is not a store of value, not in the past and not even now, as it still exhibits significant volatility.

Vanguard, founded by John Bogle in 1975, is a firm believer in index investing and considers index funds to be the best way for ordinary investors to achieve market average returns. The company launched its first fund, the Vanguard 500 Index Fund, in 1976, which was the precursor to ETFs and contributed to their widespread adoption.

Tim Buckley mentioned that Vanguard currently has no plans to offer Bitcoin-related ETFs unless there are significant changes in the asset class. He believes that Bitcoin is a speculative asset, a sentiment echoed by Greg Davis who said, “absolutely correct.”

When asked why Bitcoin ETFs are not suitable for long-term investment portfolios, Tim Buckley explained that the asset classes offered by Vanguard have underlying potential cash flows. For example, stocks represent the future earnings of a company, while bonds include both interest and principal. These assets can be valued, but Tim Buckley does not understand why Bitcoin should be included in investment portfolios or how to evaluate its role in such portfolios.

In summary, Tim Buckley emphasized that Bitcoin’s volatility is too high. It has not been a store of value in the past and still exhibits significant volatility today. When the stock market recently experienced a sharp decline, Bitcoin followed suit. Therefore, it is a speculative asset, and it is difficult to imagine why Bitcoin should be included in long-term investment portfolios.

The good news is that Tim Buckley will retire at the end of the year, leading cryptocurrency enthusiasts to speculate that Vanguard may undergo a transformation in its investment policies.

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