TradFi giant Vanguard picks former BlackRock executive as next CEO

Author: Jack Inabinet, Bankless; Compiler: Wuzhu, Golden Finance

TradFi Asset management giant Vanguard Group announced late Tuesday that it has selected former BlackRock executive Salim Ramji as its next CEO.

Exclusive news points:

• IBIT involvement:Ramji served as global head of BlackRock's iShares ETF division until January of this year when he left the company to "pursue new leadership or entrepreneurial opportunities outside the company." During his tenure, Ramji oversaw the launch of the BlackRock iShares Bitcoin Trust (IBIT) spot Bitcoin ETF.

• Vanguard's resistance:While many leading asset managers launched spot Bitcoin ETF products and trading in January, Vanguard has persisted in resisting. The firm said it does not believe Bitcoin has any role to play in a long-term portfolio.

• Hope for Change:The appointment came as a surprise to many, as Ramji’s IBIT involvement contrasted with Vanguard’s anti-BTC leanings, but also sparked optimism that the change in executives could be a sign that the asset manager is changing its previous crypto stance and becoming more open to the idea.

• Dreams Shattered:Unfortunately, Vanguard remains convinced that BTC is not a sound long-term investment. Ramji told Barron’s that consistency in the firm’s products is important, and that Vanguard’s failure to offer a BTC product is consistent with its investment philosophy.

My Take:

If the change in Vanguard’s CEO signals a new pro-crypto attitude, then this announcement would suggest a stronger institutional (or at least Vanguard’s) interest in BTC’s investment potential. Since Ramji’s appointment doesn’t change anything, there doesn’t seem to be much to take away from the announcement other than confirmation that Vanguard will stay the course.