On Wednesday (May 15th), Bitcoin briefly rebounded to $62,056. Vanguard, managing $9 trillion and a Wall Street asset management titan, has been hesitant to enter the Bitcoin spot ETF arena. However, recent developments suggest a shift as the company plans to appoint Salim Ramji, a former BlackRock ETF executive, as its new CEO, noted for his cryptocurrency-friendly views.
Earlier this year, Ramji was responsible for overseeing the approval and launch of BlackRock’s Bitcoin spot exchange-traded fund. His appointment on May 14th to Vanguard has led industry experts to speculate whether he will attempt to change the company's long-standing opposition to Bitcoin, possibly even initiating a delayed application for a Bitcoin spot ETF.
Bloomberg ETF analyst James Seyffart tweeted that he doubts Ramji could persuade Vanguard to launch its own Bitcoin spot ETF product.
However, Seyffart does believe that Ramji might reverse Vanguard’s stance on not allowing clients to purchase Bitcoin spot ETFs on its brokerage platform.
Bloomberg ETF analyst Eric Balchunas also holds a similar view, noting Ramji’s past high regard for Bitcoin and blockchain technology.
“Who knows, in my view, the door is now more open,” he said.
He found it "somewhat shocking" that Vanguard decided to hire an external candidate as CEO for the first time.
Ramji will replace long-time Bitcoin critic Tim Buckley as CEO of Vanguard starting July 8th.
Since Buckley announced his retirement plans at the end of February, Vanguard has been seeking a new leader.
Four days after aiding in the launch of BlackRock’s iShares Bitcoin Spot ETF (IBIT) on January 11th, 2024, Ramji left BlackRock to seek new leadership or entrepreneurial opportunities outside the firm.
He had served as the global head of iShares and Index Investments at BlackRock and was a member of the firm's global executive committee.
In January, when Vanguard Investment decided not to offer Bitcoin spot ETFs on its brokerage platform, some long-time clients threatened to close their accounts.
Vanguard has doubled down on not offering Bitcoin spot ETF products, claiming that Bitcoin does not align with the company’s investment philosophy.
“Our view is that these products do not fit with our focus on asset classes like stocks, bonds, and cash, which Vanguard considers to be the cornerstone of a balanced long-term investment portfolio.”
US CPI to Impact Bitcoin, Crypto Market
Later on Wednesday, the crucial US Consumer Price Index (CPI) report may affect investors' expectations of a Federal Reserve rate cut in September.
Concerns that monetary policy may not be restrictive enough to bring inflation back to the 2% target could trigger speculation about Fed rate cuts.
A more hawkish interest rate path from the Fed might impact demand for Bitcoin spot ETFs and the trend in Bitcoin prices. Economists predict that the annual inflation rate for April could decrease from 3.5% to 3.4%, with the core inflation rate dropping from 3.8% to 3.6%.
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