Vanguard CEO says asset-management giant won't pursue a bitcoin ETF, unlike rivals

• Vanguard CEO Tim Buckley told CNBC that the firm will not be pursuing a bitcoin ETF.
• Rival asset managers such as BlackRock and Fidelity are waiting to get their applications approved.
• Excitement over a possible spot bitcoin ETF fueled the largest weekly inflow into digital assets since July 2022.

Not all of Wall Street is planning on pursuing a spot bitcoin ETF, even as optimism rises on the regulatory pathway to create one.

While asset management rivals such as BlackRock and Fidelity have applications pending, Vanguard CEO Tim Buckley told CNBC on Friday that his firm has no plans to follow suit.

"We won't be pursuing a bitcoin ETF. It's just like we don't use gold as an asset class for our clients," he said. "It's not that people can't invest in there. We just look at asset classes or, you know, what belongs in a long-term portfolio, what has intrinsic value, has cash flows to it? And those are the asset classes we steer people towards. And so we don't go towards bitcoin or gold or any other of those stable assets."

A spokesman later told Insider that Vanguard views the investment case for cryptocurrencies as weak.

"Unlike stocks and bonds, most cryptocurrencies lack intrinsic economic value and generate no cash flows, such as interest payments or dividends," he said. "Further, cryptocurrencies have proven to be highly volatile, which runs counter to Vanguard's goal to generate positive real returns to investors over time."

Currently, BlackRock's spot bitcoin ETF application remains under review by the Securities and Exchange Commission. While the regulator allows bitcoin futures ETFs, it has been largely critical of the cryptocurrency sphere, and has previously denied such applications. 

But in August, Grayscale Investments won its court case against the SEC, which had earlier rejected an application to turn its over-the-counter traded bitcoin trust into an ETF.  

The court decision raised hopes that the regulatory obstacles would be cleared, allowing for approval of a spot bitcoin ETF soon.

Meanwhile, enthusiasm for a potential spot bitcoin ETF continues to grow on Wall Street. Earlier this month, crypto-bull Mike Novogratz told CNBC that it would make zero sense for an ETF to be blocked. 

Markets are also demonstrating a readiness, and inflows into digital asset funds have jumped to their highest weekly level since July 2022.

According to the latest Coin Shares report, digital asset investment inflows hit $326 million for the week, with bitcoin making up 90%.