Bloomberg Analyst Says Backlash for Vanguard “Highly Unlikely” To Dent the Firms Inflows
Vanguard’s decision to not allow the trade of Bitcoin ETFs on its platform had kept the entire crypto community on its toes. However, Bloomberg analyst believes that the current backlash won’t make any difference in the company’s inflow of funds.
Vanguard marks heavy fund inflows
According to Bloomberg analyst Eric Balchunas, Vanguard ETFs have bought around $5 billion in funds in the past five days. Commenting on this huge number Balchunas took to platform X expressing his standpoint. Giving a context, he said that an inflow of funds nearing $5 billion is the prediction for all the nine new Bitcoin ETFs for the first four to six months of trading.
The comment puts the numbers into perspective. It also gives a clear idea that Vanguard is minting heavy amounts of money from its ETFs.
Vanguard won’t be affected by backlash: Eric Balchunas
Vanguard had previously reaffirmed its resolve to steer clear of cryptocurrency investments. The firm continues to exclude bitcoin futures products from its brokerage offerings. It is also refraining from investing in spot bitcoin exchange-traded funds.
The firm clarified that this choice is consistent with the organization’s strategy. Following the move, Vanguard saw a lot of online backlashes on social media. People were upset that bitcoin items were not available on the platform of the financial behemoth. Additionally, on social media sites like X, the hashtag #BoycottVanguard has begun to trend.
However, Balchunas now thinks that the boycott movement is “highly unlikely to even dent the inflows (of the company) let alone cause bleeding (to its funds)”
Is Vanguard changing its approach?
With the ETF hype taking the investor world by storm, it seems like Vanguard might change its stance sooner or later.
CoinGape had also previously reported that Vanguard might reconsider its position after an X report showed the firm’s reps apologize for their previous crypto skepticism.
This change of thought was brought to the forefront by market advocate Mike Alfred, and it generated a lot of discussion on Crypto X.
However, Vanguard has not yet confirmed the update, despite it currently generating massive interest in the crypto ecosystem.
Even Eric Balchunas believes that this position may become less rigid in the coming years.