Vanguard's Stance on Cryptocurrency
Financial giant Vanguard has recently clarified why it does not offer spot bitcoin exchange-traded funds (ETFs) on its trading platform. In a blog post titled "No Bitcoin ETFs at Vanguard? Here's why," the firm emphasized that cryptocurrency is considered an immature asset class with little history, no inherent economic value, no cash flow, and the potential to create instability within a portfolio.
Vanguard's Global Reach and Assets Under Management
As of December 31, 2023, Vanguard serves over 50 million investors worldwide and manages approximately $8 trillion globally. Despite this significant presence in the financial industry, Vanguard has chosen not to allow its clients to trade the newly approved spot bitcoin ETFs.
The Approval of Spot Bitcoin ETFs and Vanguard's Response
The U.S. Securities and Exchange Commission (SEC) recently approved 11 spot bitcoin ETFs, leading to increased attention on Vanguard's decision to disallow trading of these products. Vanguard has also made it clear that it has no plans to launch its own spot bitcoin ETFs.
Vanguard's Explanation for Not Offering Spot Crypto ETFs
Janel Jackson, Vanguard's global head of ETF Capital Markets and Broker and Index Relations, elaborated on the firm's decision in the blog post. She stated that Vanguard considers cryptocurrency to be more of a speculation than an investment. The lack of history, inherent economic value, cash flow, and potential portfolio disruption are the primary reasons behind Vanguard's choice not to offer crypto products.
Vanguard's Interest in Blockchain Technology
While Vanguard does not see the merit in offering crypto-related products, the firm is interested in blockchain technology. Jackson highlighted that Vanguard believes blockchain can improve capital markets' efficiency and has actively engaged in research to explore its use beyond cryptocurrencies.
No Plans for Vanguard to Launch Crypto ETFs
Given the current state of crypto as an asset class, Vanguard has no plans to launch its own bitcoin ETF or any other crypto-related products. The firm carefully evaluates investment products based on their enduring investment merit and their ability to meet clients' needs.
Vanguard's Thorough Product Launch Process
Vanguard's product launch decisions are guided by a rigorous process. While the discussion around bitcoin and cryptocurrencies has gained momentum, Vanguard does not believe that they have an appropriate role to play in long-term portfolios.
What are your thoughts on Vanguard's explanation regarding spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
Should You Purchase Gold?
Gold was once considered an investment safe haven during times of economic crisis. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Some experts think that this could change in the near future. They believe gold prices could increase dramatically if there is another global financial crises.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
Here are some things to consider if you're considering investing in gold.
- First, consider whether or not you need the money you're saving for retirement. You can save for retirement and not invest your savings in gold. However, you can still save for retirement without putting your savings into gold.
- Second, ensure you fully understand the risks involved in buying gold. Each one offers different levels security and flexibility.
- Finally, remember that gold doesn't offer the same level of safety as a bank account. If you lose your gold coins, you may never recover them.
Do your research before you buy gold. Protect your gold if you already have it.
What are the advantages of a gold IRA
An Individual Retirement Account (IRA) is the best way to put money towards retirement. It will be tax-deferred up until the time you withdraw it. You can decide how much money you withdraw each year. There are many types and types of IRAs. Some are better suited for people who want to save for college expenses. Others are made for investors seeking higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. These earnings don't get taxed if they withdraw funds. So if you're planning to retire early, this type of account may make sense.
Because you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This eliminates the need to constantly make deposits. To make sure you don't miss any payments, you can also set up direct deductions.
Finally, gold remains one of the best investment options today. Its value is stable because it's not tied with any one country. Even in economic turmoil, gold prices tends to remain relatively stable. It is therefore a great choice for protecting your savings against inflation.
Is the government allowed to take your gold
Because you have it, the government can't take it. You earned it through hard work. It belongs entirely to you. There may be exceptions to this rule. Your gold could be taken away if your crime was fraud against federal government. Your precious metals can also be lost if you owe tax to the IRS. However, even if taxes are not paid, gold is still your property.
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
Investing In Gold vs. Investing In Stocks
These days, it might seem quite risky to invest your money in gold. This is because most people believe that it is no longer economically profitable to invest gold. This belief is due to the fact that many people see gold prices dropping because of the global economy. They believe they would lose their money if they invested gold. In reality, however, there are still significant benefits that you can get when investing in gold. Let's take a look at some of the benefits.
One of the oldest currencies known to man is gold. Its use can be traced back to thousands of years ago. It was used all around the world as a reserve of value. It is still used as a payment method by South Africa and other countries.
You must first decide how much you are willing and able to pay per gram to decide whether or not gold should be your investment. You must determine how much gold bullion you can afford per gram before you consider buying it. You can always ask a local jeweler what the current market rate is if you don't have it.
Noting that gold prices have fallen in recent years, it is worth noting that the cost to produce gold has gone up. So while the price of gold has declined, production costs haven't changed.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. But, if your goal is to make long-term investments in gold, this might be worth considering. You can profit if you sell your gold at a higher price than you bought it.
We hope this article has given you an improved understanding of gold investment tools. We strongly recommend that you research all available options before making any decisions. Only then can informed decisions be made.
By: Kevin Helms
Title: Vanguard Explains Why Spot Bitcoin ETFs Are Not Available on Its Trading Platform
Sourced From: news.bitcoin.com/vanguard-says-no-to-bitcoin-etfs-views-crypto-as-immature-asset-class-with-no-inherent-economic-value/
Published Date: Mon, 29 Jan 2024 01:00:24 +0000