It is just about a week since spot Bitcoin ETF products went live in the United States and one of the core critics of the move, Vanguard Asset Management, is already backtracking on its stance regarding the product.
Spot Bitcoin ETF: Is Vanguard Changing Stance?
The Vanguard Group spooked the crypto ecosystem in the past week when it reiterated its stance never to support spot Bitcoin ETF products. The firm not only expressed its disinterest in the product, it reportedly made a move to proactively block the trading of the product through its platform.
In less than a week since it made its core intentions known, the firm is reportedly apologizing to its clients for the management’s “lack of vision” in crypto. Market advocate Mike Alfred brought this update to the frontline and has sparked a bout of reactions on Crypto X.
According to Alfred, he spoke with Merrill and Vanguard and asked to pull out all of his funds with them. He said the two firms connected him with a Senior Account Manager who in both cases apologized and acknowledged that many clients have called to complain about the same issues.
Alfred noted that the reps told him they owned Bitcoin personally, adding that the Bitcoin revolution is one that is just starting up.
The update from Mike Alfred was echoed by Fox Business Journalist Eleanor Terrett, lending additional legitimacy to the claims. However, neither Merrill nor Vanguard has confirmed the update, despite it currently generating massive interest in the crypto ecosystem.
Current State of the Bitcoin Market
The launch of the spot Bitcoin ETF came with so much enthusiasm that the hype generated led to the trading of over $4 billion on the first day of trading. Impressive figures were also recorded on the second day but enthusiasm has died off compared to the traction many had anticipated.
Worthy of note with the current state of the underlying asset Bitcoin. Bitcoin price has not impressed traders as the launch of the spot Bitcoin ETF product did not boost the price to cross the $50,000 resistance level.
In reality, Bitcoin has dropped as low as $41,000 as selling intensified, lending legitimacy to Vanguard’s claims that the underlying product is unstable. At the moment, market traders are now looking towards the next Bitcoin halving with Gert van Lagen predicting the price of the coin could reach $200,000 before the event emerges.