Vanguard CEO Salim Ramji Rules Out Launching Crypto ETFs

Vanguard's new CEO, Salim Ramji, discussed the company's future strategy, including its stance on launching a crypto exchange-traded fund (ETF)

Vanguard, one of the world’s largest investment management companies, has no plans to launch a crypto exchange-traded fund (ETF), according to the company’s new CEO.

Salim Ramji, a former Blackrock executive, joined Vanguard in May and will take over as CEO on July 8. He discussed Vanguard’s future strategy in an interview with Etf.com published Wednesday.

When asked about the possibility of Vanguard expanding its ETF offerings, especially in the crypto sector, given his vast experience managing over 1,400 ETFs at Blackrock’s Ishares division, Ramji said that Vanguard’s strategy would be different from its competitors’.

“I’m not going to copy competitors,” he said. “It’s important that a company stay consistent with who they are. Vanguard must look through the lens of our clients. But I want more innovation.”

He highlighted the firm’s strengths in active fixed income management. “We have an outstanding active fixed income capability,” he noted. Ramji also pointed out that “Vanguard has had active funds from its early days and is one of the largest active management firms.” He then went on to say that the company is committed to Jack Bogle’s “cost matters hypothesis.”

“We will not be launching crypto ETFs,” he concluded.

In January 2024, Vanguard made headlines by rejecting the hype around spot bitcoin ETFs, setting itself apart from other financial institutions. The company considers cryptocurrency to be an immature asset class with no inherent economic value, high volatility, and the potential to harm portfolios.

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