Sen. Elizabeth Warren, a member of the Senate Banking Committee and a known critic of cryptocurrencies, lashed out at the Securities and Exchange Commission (SEC) for approving spot bitcoin exchange-traded funds (ETFs). The senator took to X to express her discontent, stating that the SEC was wrong on both legal and policy grounds regarding the decision to greenlight 11 spot bitcoin ETFs. She emphasized the need for urgent implementation of anti-money laundering rules for the crypto sector, especially if it continues to integrate further into the financial system.
While the SEC faced criticism from Sen. Warren, investment giant Vanguard took a cautious approach by deciding not to offer spot bitcoin ETFs. The company cited concerns about high volatility, labeling them as detrimental to generating long-term returns. Vanguard customers were unable to participate in the trading of spot bitcoin funds, with a customer service representative highlighting their speculative and unregulated nature. The decision aligns with Vanguard’s philosophy of avoiding high-risk investments that don’t align with their commitment to helping investors achieve positive real returns over the long term.
Vanguard’s stance contrasts with other brokerages like E*TRADE, Charles Schwab, and Fidelity, where users with brokerage accounts were able to purchase spot bitcoin ETFs. However, clients attempting to buy BlackRock’s IBIT on Vanguard were informed that the trade could not be completed due to various factors, including regulatory restrictions.
Spot Bitcoin ETFs’ Debut: $4.6 Billion Trading Volume
Despite the differing positions among brokerages, spot bitcoin ETFs experienced a substantial trading volume of $4.6 billion on their first day. According to LSEG data, Grayscale, BlackRock, and Fidelity held a significant sway over trading volumes. Todd Rosenbluth, a strategist at VettaFi, noted:
Trading volumes for new ETF products have shown resilience, indicating a sustained trend rather than a short-term spike.
The divergence in opinions and actions within the financial industry reflects the ongoing debate over the legitimacy and risk associated with cryptocurrencies, particularly in the form of ETFs. However, regulatory scrutiny and differing perspectives from major players will likely shape the future of crypto investments as the market for spot Bitcoin ETFs continues to evolve.
Related Reading | Bitcoin Sparks Controversy: Critics Disapprove Of Spot ETF Approvals