The world’s largest asset manager, BlackRock, is heavily involved in cryptocurrencies and tokenized asset issuance. The company, which has 2 ETFs and a tokenized US bond issued on the Ethereum network, has attracted massive demand. Due to intense customer interest, the value of the BTC assets it holds as a counterpart to the ETFs has rapidly exceeded $20 billion. But what about its biggest competitor?
Vanguard and Cryptocurrencies
The second-largest asset manager, Vanguard, manages $9 trillion in customer assets. The company’s previous CEO had stated that they were distant from cryptocurrencies and would not offer them to their clients. However, recent reports suggested that a few major asset managers might make BTC ETFs accessible to their clients.
According to the latest statement from Vanguard, the $9 trillion giant will not participate in the crypto ETF game. This is not a good thing because the more channels investors can enter through, the greater the capital flow into cryptocurrencies. Vanguard CEO Salim Ramji clearly stated that they do not want to launch crypto exchange-traded funds.
Ramji worked at BlackRock for about 10 years and transferred to Vanguard last month. He was the global head of BlackRock’s iShares and index investments, responsible for managing most of the firm’s client assets. So, he was also in charge of the company’s BTC ETF applications and other processes.
“I will not copy competitors. It is important for a company to remain consistent with its identity. But I want more innovation… Vanguard has had active funds since its early days and is one of the largest active management firms. Jack Bogle’s ‘cost matters hypothesis’ is something we will always keep in mind. We will not launch crypto ETFs.”
