American Investment management company <a href="https://bitcoinist.com/merrill-lynch-vanguard-says-no-to-spot-bitcoin-etfs/" rel="noopener noreferrer nofollow">Vanguard Group</a> is currently facing severe backlash after reportedly rejecting customers’ requests to access and trade Spot Bitcoin ETFs on the platform.&nbsp;
<h2 id="vanguard-experiences-mass-customer-exodus">Vanguard Experiences Mass Customer Exodus</h2>
The recent <a href="https://bitcoinist.com/whats-next-for-crypto-bitcoin-etf-approval/" rel="noopener noreferrer nofollow">approval of Spot Bitcoin ETFs</a> on Wednesday, January 10, has set off a surge in trading activities among numerous investors. Consequently, investment management companies like <a href="https://bitcoinist.com/blackrock-slashes-bitcoin-etf-fees-to-competition/" rel="noopener noreferrer nofollow">BlackRock</a> have experienced a surge in transactions.&nbsp;
Despite the excitement surrounding the debut of these <a href="https://bitcoinist.com/the-ballad-of-crypto-and-bitcoin-etf-approval/" rel="noopener noreferrer nofollow">Spot BTC ETFs</a>, customers with brokerage accounts at Vanguard, one of the world’s most respected investment advisors, were unable to participate in the trading process due to restrictions placed by Vanguard.&nbsp;
As a result, a considerable number of customers holding accounts with the investment management company have opted to <a href="https://x.com/julian__fahrer/status/1745510904698167319?s=46" rel="noopener noreferrer nofollow" target="_blank">withdraw their funds</a> and close their accounts permanently.&nbsp;
Vanessa Harris, a former Vanguard customer, <a href="https://x.com/technologypoet/status/1745504687376204249?s=46" rel="noopener noreferrer nofollow" target="_blank">expressed</a> her frustration on X (formerly Twitter) regarding Vanguard’s recent limitations preventing customers from trading Spot BTC ETFs on the platform.&nbsp;
“Just fully transferred my retirement account from Vanguard Group to Fidelity because Vanguard won’t support Bitcoin ETFs, and appears to be manipulating the price of Bitcoin by only allowing people to sell GBTC, not buy,” Harris stated.&nbsp;
Another X user <a href="https://x.com/the_chartpunk/status/1745690544502665445?s=46" rel="noopener noreferrer nofollow" target="_blank">suggested</a> that individuals withdraw from Vanguard and move to BTC-friendly alternatives like Fidelity to start their <a href="https://bitcoinist.com/bitcoin-etf-readies-for-jan-15-trading-launch/" rel="noopener noreferrer nofollow">Spot Bitcoin ETF trades.&nbsp;</a>
Vanguard’s decision to stay on the sidelines of Spot Bitcoin ETFs is seen as a missed opportunity to cater to the evolving preferences of their customers. Despite the mass withdrawals, the investment management company has not indicated any intention to reconsider its current policy against Spot BTC ETFs.&nbsp;
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/idFG41s4/" alt="Bitcoin price chart from Tradingview.com (Vanguard Investments)" width="3266" height="1530">
<h2 id="vanguard-to-ban-all-bitcoin-etfs-on-its-platform">Vanguard To Ban All Bitcoin ETFs On Its Platform</h2>
Senior ETF Analyst at Bloomberg, Eric Balchunas has recently taken to X to <a href="https://x.com/ericbalchunas/status/1745497991899713799?s=46" rel="noopener noreferrer nofollow" target="_blank">announce</a> that Vanguard has banned all Spot BTC ETFs from their platform. Despite the growing popularity of <a href="https://www.newsbtc.com/news/crypto-investment-inflows-reach-one-year-high-reveals-coinshares/" rel="noopener noreferrer nofollow" target="_blank">cryptocurrency investments</a>, Vanguard still does not endorse investments in BTC or other cryptocurrencies on its platform.
The investment management company is known to have a contentious relationship with cryptocurrencies including BTC, the world’s largest cryptocurrency. In 2017, the late founder of Vanguard, John C. Bogle advised people to “avoid Bitcoin like a plague.”&nbsp;
“Spot Bitcoin ETFs will not be available for purchase on the Vanguard platform. We also have no plans to offer Vanguard Bitcoin ETFs or other crypto-related products,” the investment management company <a href="https://x.com/kr00ney/status/1745542110961693165?s=46" rel="noopener noreferrer nofollow" target="_blank">stated</a>.&nbsp;

Vanguard Faces Extreme Backlash For Denying Customers Access To Bitcoin Spot ETFs

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