Vanguard Appoints Crypto-Friendly Former BlackRock Exec as New CEO
Financial institution Vanguard has appointed the former BlackRock executive as their new CEO. During his interview, Salim Ramji spoke highly of Bitcoin and blockchain during his tenure at BlackRock. He worked on filing Bitcoin spot ETF while employed at the biggest asset management firm in the world formerly.
At Vanguard, Ramji is going to work as CEO and bring his expertise regarding ETF filing and approval of Bitcoin. His appointment was confirmed on 14th May 2024 and led to various questions among his peers if he will work on changing the historically Bitcoin-averse stance at Vanguard.
Vanguard may File Spot Bitcoin Application
There are also some talks about a possible spot Bitcoin ETF filing coming from Vanguard in the upcoming days.
Bloomberg’s ETF analyst James Seyffart commented on the matter claiming that Ramji is in well-position to flip the previous stance on Bitcoin for Vanguard. It is important to note that previously, Vanguard barred its clients from purchasing or investing in spot Bitcoin ETFs via its local brokerage platform.
Eric Balchunas, the contemporary analyst at Bloomberg to Seyffart noticed that in his opinion the doors of opportunity for the firm to foray into Bitcoin ETF territory are opened wider than before now.
The Impact of Ramji’s Appointment as New Vanguard CEO
Further shedding light on the matter, Balchunas noticed that Vanguard’s decision to appoint Ramji as CEO is somewhat of a shocking revelation. The analyst claimed that it was the first time that the firm went with an outside executive as an appointee.
Ramji is set to succeed Tim Buckley, who retained a less then acceptable stance on Bitcoin during his term as CEO at the asset management firm.
Ramji is set to start his term on 8th July 2024. The firm has reportedly been looking to fill in the shoes of its former CEO since February 2024. The search was started when Buckley publicized his decision to retire.
Ramji told journalists that he parted with BlackRock with an aim to work in a leadership position or setup an entrepreneurial project. He took his leave from BlackRock after four days of playing a pivotal role in approving iShares Bitcoin Trust.
At BlackRock, Ramji served as global head of iShares and index investments and had a membership at the global committee members.
Meanwhile, one of the long-term consumers at Vanguard threatened to close their account in case the firm decides against allowing a Bitcoin spot ETF on its brokerage platform. The news arrived at a time when Vanguard decided to list the Inverse Jim Cramer ETF.
Vanguard’s Anti-Bitcoin Policy
At the time of printing this article, Vanguard has not issued any official decisions to change its former stance on Bitcoin spot ETFs. The firm is yet to allow its customers to add Bitcoin spot ETF to their investment portfolios. The asset management firm has retained that Bitcoin does not align with the investment philosophy of the financial firm.
One of the statements issued by the firm has retained that Bitcoin is not in line with the investment products offered at Vanguard such as bonds, equities, and cash. The firm has classified these investment options as a basis for a well-balanced and long-term investment portfolio. However, Vanguard is one of the biggest MicroStrategy shareholders.
The article reported that Vanguard Group accounts for 8.24% stake of MicroStrategy as of 2023, making it the second-largest institutional holder of the business intelligence firm.
In the same manner, Vanguard has also added MSTR shares to several mutual funds such as Small-Cap Index Fund, Small-Cap Growth Index, Total Stock Market Index Fund, and Extended Market Index Fund among others. In this manner, Vanguard has retained an indirect but significant exposure to Bitcoin while disallowing its consumers from investing in any spot Bitcoin ETFs.
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