WASHINGTON, D.C.— Dennis M. Kelleher, Co-founder, President, and CEO of Better Markets issued the following statement in connection with Vanguard’s refusal to offer spot Bitcoin exchange-traded products on its platform:
“Bravo Vanguard! One of the biggest and most well-known fund issuers and money managers in the world is to be commended for putting its investors’ best interest first by refusing to create or to offer spot Bitcoin exchange-traded products on its platform. In doing so, it is withstanding enormous competitive pressures and foregoing quick, easy, and large predatory profits, all for the good of its customers. That takes integrity and proves again why Vanguard is one of the most respected and trusted financial firms in the country.
“Crypto is a worthless, useless, speculative, volatile, and criminal-preferred financial product and Vanguard is right that it does not ‘align’ with its focus ‘on asset classes such as equities, bonds, and cash, which Vanguard views as the building blocks of a well-balanced, long-term investment portfolio.’ While it’s no surprise crypto firms are enriching themselves by pushing crypto investments, it’s disappointing that too many other traditional and trusted financial firms are letting profits cloud their judgment and providing false comfort to America’s investors that crypto is a safe and legitimate investment, when it is little more than a casino chip.
“Unfortunately, it’s not only investors who are going to be harmed here. As crypto gets more interconnected with the core of the traditional financial and banking systems, the risk if not likelihood of systemic crashes and bailouts dramatically increases. Financial firms have a choice and they can refuse to participate in this erosion of investor protection, market integrity, and financial stability. We hope that more traditional financial firms more carefully scrutinize these products and come to the same conclusions as Vanguard.”
Read more about Better Markets’ views on the SEC’s decision to allow a crypto spot ETP here.
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.