Vanguard Blocks Customers from Trading Spot Bitcoin ETFs, Prompting Dissatisfaction and Account Closures

Vanguard's Stance on Spot Bitcoin ETFs

Several investment firms, including Vanguard, have made the decision to block customers from trading spot bitcoin exchange-traded funds (ETFs). Vanguard, a leading investment firm, explained that these products do not align with their focus on asset classes such as equities, bonds, and cash. As a result, customers who were dissatisfied with the lack of spot bitcoin ETF options on Vanguard's platform have chosen to close their accounts and move their funds to other platforms that offer these products.

Vanguard's Decision Not to Offer Spot Bitcoin ETF Trading

The anticipation surrounding the launch of U.S. spot bitcoin exchange-traded funds (ETFs) finally came to fruition on Thursday, as these ETFs began trading. However, soon after the market opened, it was revealed that some financial institutions, including Vanguard, were not offering spot bitcoin ETFs to their customers. Vanguard confirmed that they have no intention of launching their own bitcoin ETF or listing funds from other issuers. Their focus remains on traditional asset classes such as equities, bonds, and cash, which they believe are essential for a well-balanced, long-term investment portfolio.

Customer Reaction and Account Closures

The news of Vanguard's decision not to offer spot bitcoin ETFs has frustrated many bitcoin enthusiasts. Some individuals have expressed their dissatisfaction by closing their Vanguard accounts and transferring their funds to other platforms, such as Fidelity, that provide access to these newly approved products. Additionally, users have reported that Vanguard now only allows them to sell their Grayscale Bitcoin Trust (GBTC) holdings, whereas they were previously able to buy them.

For example, Vanessa Harris, a Twitter user, shared that she fully transferred her retirement account from Vanguard to Fidelity because Vanguard does not support Bitcoin ETFs and appears to be manipulating the price of Bitcoin by only allowing people to sell GBTC, not buy.

Other Investment Banks' Approach

Vanguard is not the only investment bank that has chosen not to offer spot bitcoin ETFs to its customers on the first day of trading. UBS, Morgan Stanley, Bank of America's Merrill Lynch, Citi, and Edward Jones have also reportedly held off on providing access to these ETFs. While some of these banks may consider offering access in the future, potentially with certain conditions, others have not yet revealed their stance.


The decision by Vanguard and other investment banks not to offer spot bitcoin ETFs has created dissatisfaction among customers who were eagerly anticipating the launch of these products. As a result, individuals have taken the step of closing their accounts and moving their funds to alternative platforms that do provide access to spot bitcoin ETFs. It remains to be seen how the market for these ETFs will evolve and whether more institutions will embrace them in the future.

Frequently Asked Questions

Do you need to open a Precious Metal IRA

You should be aware that precious metals cannot be covered by insurance. There is no way to recover money that you have invested in precious metals. This includes any loss of investments from theft, fire, flood or other circumstances.

You can protect yourself against such losses by purchasing physical gold and silver coins. These coins have been around for thousands and represent a real asset that can never be lost. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.

Consider a reputable business that offers low rates and good products when opening an IRA. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.

If you decide to open an account, remember that you won't see any returns until after you retire. Keep your eyes open for the future.

How Do You Make a Withdrawal from a Precious Metal IRA?

First, decide if it is possible to withdraw funds from an IRA. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.

A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. This option will require you to pay taxes on the amount that you withdraw.

Next, calculate how much money your IRA will allow you to withdraw. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.

Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.

Once you have completed these calculations, you need to open your brokerage account. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.

When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage facilities will accept bullion bars, others require you to buy individual coins. Before choosing one, consider the pros and disadvantages of each.

Bullion bars require less space, as they don't contain individual coins. But you will have to count each coin separately. You can track their value by keeping individual coins.

Some people like to keep their coins in vaults. Some prefer to keep them in a vault. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.

What are the pros & cons of a Gold IRA?

An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. But, this type of investment comes with its own set of disadvantages.

You could lose all of your accumulated money if you take out too much from your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. If you do withdraw funds, you'll need to pay a penalty.

The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.

You can purchase insurance if you want to keep your money out of a bank. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. You might be required to buy insurance that covers losses up to $500,000.

You will need to decide how much gold you wish to use if you opt for a gold IRA. You may be limited in the amount of gold you can have by some providers. Some providers allow you to choose your weight.

You'll also need to decide whether to buy physical gold or futures contracts. Futures contracts for gold are less expensive than physical gold. Futures contracts provide flexibility for purchasing gold. They allow you to set up a contract with a specific expiration date.

You also need to decide the type and level of insurance coverage you want. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. The policy does not cover natural disasters. You may consider adding additional coverage if you live in an area at high risk.

Insurance is not enough. You also need to think about the cost of gold storage. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.

If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians cannot sell your assets. Instead, they must keep your assets for as long you request.

Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). Also, you should specify how much each month you plan to invest.

You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. After reviewing your application, the company will send you a confirmation mail.

Consider consulting a financial advisor when opening a golden IRA. A financial planner can help you decide the type of IRA that is right for your needs. They can help you find cheaper insurance options to lower your costs.


  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (
  • The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (

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How To

Tips to Invest in Gold

One of the most sought-after investment strategies is investing in gold. This is due to the many benefits of investing in gold. There are many ways to invest gold. Some people choose to purchase gold coins physically, while some prefer to invest with gold ETFs.

Before buying any type gold, it is important to think about these things.

  • First, you must check whether your country allows you to own gold. If your country allows you to own gold, then you are allowed to proceed. You can also look at buying gold abroad.
  • You should also know the type of gold coin that you desire. You have the option of choosing yellow, white, or rose gold.
  • Thirdly, you should take into consideration the price of gold. It is best to start small and work your way up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
  • Remember that gold prices are subject to change regularly. It is important to stay up-to-date with the latest trends.


By: Kevin Helms
Title: Vanguard Blocks Customers from Trading Spot Bitcoin ETFs, Prompting Dissatisfaction and Account Closures
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Published Date: Sat, 13 Jan 2024 04:00:37 +0000

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