The world of finance witnessed a major event with the first day of spot Bitcoin ETF (Exchange-Traded Fund) trading. It was a huge success, with nearly $5 billion worth of these funds changing hands. However, not everyone jumped on this opportunity. Big asset managers, like Vanguard Group, decided to stay away. They didn’t let their investors access these new products.

Different reports show that big names in finance, such as Citigroup Inc., Bank of America Corp.’s Merrill Lynch, State Street Corp., UBS Group AG, and Edward Jones, had varied reactions. Some refused to allow trading of these new ETFs, others let only select customers trade them, or were still thinking over the situation. On the other side, Charles Schwab Corp. allowed trading on its platform, and Robinhood Markets Inc. plans to list them soon, as per CEO Vlad Tenev’s tweet.

The spot Bitcoin ETFs attracted about $721 million on their first trading day. This was in addition to $4.7 billion worth of the funds that were traded. This success came after more than ten years of discussions between issuers and the Securities and Exchange Commission (SEC). Previously, the SEC had doubts about these funds, mainly because of concerns about fraud protection for investors.

Despite the SEC’s changing view, some asset managers still think digital currencies don’t fit well in most investors’ portfolios. Vanguard is one of them. They believe that their focus should be on traditional asset classes like stocks, bonds, and cash. These, they say, are the key to a balanced, long-term investment strategy.

They are not planning to offer any Bitcoin ETFs or other crypto-related products. This decision has caused a stir among some of their customers on social media, with threats to close accounts.

“Spot Bitcoin ETFs will not be available for purchase on the Vanguard platform.”

by Vanguard

Ric Edelman, founder of the Digital Assets Council of Financial Professionals, commented on this. He said that Vanguard is being too controlling by not allowing access to these ETFs. He believes that just because Vanguard sees Bitcoin as speculative, it doesn’t mean they should block access to it.

Other big finance companies, also known as wirehouses, might be planning to add these ETFs to their offerings. According to Edelman, these companies usually don’t jump into new things first. They have to go through many legal, sales, and marketing steps first. Plus, they need to ensure their advisors are well-informed about these new offerings.

In summary, while spot Bitcoin ETFs had a remarkable debut, their acceptance in the financial world is still varied. Some are welcoming these new opportunities, while others, like Vanguard, are choosing a more cautious path.

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