NEW Bitcoin ETF Inflows Coming!? Watch Out For Vanguard!!

Asset managers have recently been Getting involved in crypto causing btc's Price to go parabolic and many investors To become rich in the process H everyone Wants to be rich however there are a few That don't seem to want to join the Party one of these is Vanguard the Second largest asset manager behind its Arch rival Black Rock but with a brand New CEO at vanguard's Helm coming from None other than Black Rock itself could This all be about to change today we aim To find Out before we begin I need to let you Know that I am not a financial advisor And nothing in this video should be Considered Financial or investment Advice this is purely educational Content sprinkled with a healthy dose of Entertainment so sit back relax and Enjoy now Vanguard was founded in 1975 By a chap named John C Bogle who was More commonly referred to as Jack Vanguard's Roots stem back to 1951 However when Jack was hired by the Wellington Management company Immediately after graduating from Princeton University where he studied Economics during his time at Princeton Jack wrote a 130 page paper about the Mutual fund industry well it was the 1950s people had to pass the time Somehow anyway that paper then reached Several key individuals most notably

Walter Morgan founder of the Wellington Fund Walter read Jack's paper from front To back and wasted no time in getting Jack on board as soon as he'd finished At Princeton fast forward to 1966 and Jack formed a merger with a goo fund Manager from Boston during the era of Aggressive stock growth a goo fund is The term used for a mutual fund which Focuses on high-risk Investments by the Way anyways by 1967 Jack had become the President of the Wellington company and By 1970 had risen to become its new CEO Good for him however that title was Ripped away in 1974 due to the merger Ending badly as the go- go era Came Crashing Down according to Jack's book Titled stay the course quote the Earnings of Wellington Management Company plummeted and its stock price Followed suit dropping from a high of $50 per share in 1968 to a low of $425 in 1975 painful mind you some cryptos could Achieve that in an Afternoon now not surprisingly Jack was Subsequently fired by the board of Directors for overseeing this collapse In the share price but there was a Silver lining to This Cloud because he Managed to convince the board to let him Stay with the company to create a new Fund division he called this division Vanguard named after HMS Vanguard a ship

Ship he'd read about that was used by The British royal Navy in the late 1700s the board actually resisted the Name at first until Jack pointed out That Vanguard funds would be listed next To Wellington funds in alphabetical Order hey it's the little things right And by the way if you're enjoying the Video so far give it a boost by thumping That like button and while you're there Subscribe to the channel if you haven't Already and ping that notification Bell To catch our next one crypto podast Okay welcome to the Bro crypto podcast I'm chadam Miss Maximus go by Max Chad 100 on Twitter and I am Giga dick the Dude with the biggest p&l in all of Crypto bro bro say what my p&l is 100% Bigger than yours bro please I was Longing Doge and drinking neat Vader While you are still spot buying BTC on Mount GX bro bro you're still driving a 20 20 Aventador where's your Bugatti at Bro bro when Bon hits a dollar I'm going To be rocking a super yacht while you're Still stuck in traffic bro the Bro Crypto podcast is sponsored by the coin Bureau deals page if you're looking for Trading fee discounts of up to 60% Exchange sign up bonuses of up to $60,000 and amazing discounts on Hardware wallets then don't be a bro be In the know and check out the link in The description below and now back to

The show what bro bro bro bro Bro bro oh uh okay they're still going Uh right um look you can either listen To these idiots for the next 4 hours or You can head to the coin Bureau deals Page and find something useful your call Anyway while Wellington's board of Directors were happy for Jack to stick Around they'd also prohibited him from Actively offering advice or managing Funds basically to avoid him having any More crazy ideas well that didn't work Because these limitations on his active Involvement instead inspired him to Create a passive investment Fund this idea led to the launch of the First index Investment Trust In 1976 Which is now called the Vanguard 500 Index as you've probably guessed this is An index of the S&P 500 in case you're Not sure what indexing is it can be Simply thought of as a list so to use The Vanguard 500 Index as an example It's a list of each stock included in The 500 companies that make up the S&P 500 with Investments made into each of These companies now Jack's S&P 500 Index Was a bit of a flop at first raising Just $1 million in its initial price Offering or IPO compared to expectations Of 150 million the banks managing the IPO advised Jack to shut it down and Then chairman of rival firm Fidelity Said that due to vanguard's ultra low

Fees and lack of uptake their business Model would never work nevertheless Jack Refused to back down and by the 1990s it Was clear that Jack had proven Fidelity And the banks wrong in no small part Thanks to the rise in tech companies During the dotom bubble these tech Companies would pay their employees a Pretty Penny or two and handling their Retirement packages meant that Vanguard Earned a pretty penny as well the Popularity of these products saw Vanguard expand its offerings as time Went on including indexing for small Caps a total stock market fund and Indexing for the international stock Market several of these notably Vanguard's original S&P 500 Index became Among the largest funds out there Propelling Vanguard to become the Biggest mutual fund company in the world In fact 2005 saw Vanguard hit the Milestone of having $1 trillion in Assets under management or AUM today Vanguard remains one of the leading Investment firms serving more than 50 Million customers with a mind melting $8.6 trillion in AUM it's second only to Black Rock which boasts an auum of $10.5 Trillion hey what's a couple of trillion Dollars either way eh now this ties into What has made Vanguard so successful the Biggest reason for vanguard's Success Has arguably been its company ethics for

Reference Vanguard doesn't make profit Outside of the minuscule fees it charges Because it's not a publicly traded Company Jack Bogle strongly believed it Was a conflict of interest to offer Stock in a company that's meant to Generate the best returns for its Investors in fact Vanguard Prides itself On not having any ownership whatsoever Saying that the company is owned by its Member funds which in turn are owned by Fund shareholders rival Black Rock on The other hand is publicly traded Meaning that its priority is to bring as Much money in as possible in order to Keep the shareholders happy as a fun Fact if Jack had chosen to list Vanguard As a publicly traded company it's Estimated that he could have had a net Worth in the billions of dollars however He died in 2019 with a net worth of just $80 million now don't get me wrong that Is still a crazy amount of money but It's pretty modest for someone who's Responsible for creating trillions of Dollars of value for its investors it's Even more modest when you consider that Jack gave half of this away to charity Truly one of the good guys anyway Vanguard's philosophy is why many people Believe it to be the best investment Firm there is that's because Vanguard Has a proven track record of ensuring Investor Returns the way it does this is

By following four key principles for Success which have guided the company Since its Inception the first of these Principles is goals basically you create Explicit targets for your savings and Investments that are realistically Achievable the second is balance which Essentially pertains to creating a well Diversified portfolio the third Principle is cost namely minimizing Costs around taxes and investment Expenses such as transaction fees and The final principle is discipline as You'll no doubt of guest this one is About sticking to the plan for the Long Haul of course the Long Haul is all well And good so long as you're still around To realize your gains as a not so fun Fact rival investment firm Fidelity once Found that the investors with the most Profitable portfolios were ones who Hadn't touched them for years well as it Turn out that's because most of these Investors were already dead make of that What you will anyways these four pillars Are important because Jack built Vanguard on the belief that the average Money manager will rarely beat the Market over the Long Haul Jack instead Advocated for simple cost-efficient Investments that offer consistent if Average returns it's a simple idea that Actually spawns some DieHard Jack Bogel Fans who affectionately called

Themselves Bogleheads anywh who in order to ensure That the vast majority of customers are In profit Vanguard will vet each Investment opportunity in full before Offering it out typically it only green Lights assets that can generate their Own cash flow and aren't very volatile As such there are some more traditional Assets that Vanguard doesn't offer such As gold and real estate these are Considered by Vanguard to be alternative Assets and according to its website Quote Vanguard classifies these types of Funds as aggressive funds which means They can be subject to extensive Fluctuations in share prices instead Vanguard's focus is on assets like Stocks bonds and other Securities to Provide investors with a stable method Of income generation this long-term risk Averse approach is exactly why it's a Favorite of many investors who are more Than happy with earning an average aage Of around 11% on their Investments per Year not crypto people in other words And this all naturally ties into how Vanguard feels about investing in even More volatile assets like Cryptocurrencies namely Bitcoin on the Surface its stance on bitcoin is fairly Obvious but there is more to it than Meets the eye allow me to explain as Alluded to in the introduction Vanguard

Is one of the few asset managers that Hasn't rushed to offer a spot Bitcoin ETF nor does it plan to anytime soon That's because according to vanguard's Website quote cryptocurrencies are Highly speculative in their current State and Vanguard believes their Long-term investment case is Weak in fact there are numerous Pages Across vanguard's website that outline Why it believes a Bitcoin ETF is bad for Your portfolio including a clip of a Discussion between Greg Davis van 's Chief investment officer and Tim Buckley Its current CEO who is expected to Retire by the end of the year but we'll Come back to that later now in that clip Tim says quote we don't plan to and We're not going to change our minds on This unless the asset class changes we Don't believe a Bitcoin ETF belongs in a Long-term portfolio of someone saving For retirement something like Bitcoin is Just too volatile to be a store of value Wow him straight for the jugular so then You'd be forgiven for thinking that Vanguard has absolutely no interest in Crypto whatsoever however that's not Entirely true as a matter of fact Vanguard happens to be the second Largest shareholder of micro strategy Stock with a 9.85% ownership if you watched our video On micro strategy you'll know that it's

Basically become a Bitcoin proxy since Michael sailor became the patron saint Of all things Satoshi you can learn more About micro strategy y using the link in The description by the way and as a side Note micro strategy mstr stock is also Included in the S&P 500 meaning that Bitcoin is infiltrating the majority of Portfolios out there and the Vanguard 500 Index is one of the top three ETFs By assets under management so in a weird Roundabout kind of way there's a good Chance that some other investors in your Family have some sort of exposure to Bitcoin so feel free to use that one at Your next gete anywh who Vanguard also Has shares in Bitcoin mining companies Such as Riot blockchain and Marathon Digital this is important because of how Much vetting Vanguard does of an asset Before it decides to invest the fact That it has gone ahead and aped in shows That it understands the tech to be fair This interest is something that's Actually been confirmed by Vanguard heck Even Tim Buckley himself has said that While they're not interested in BTC as An asset they do find the underlying Tech intriguing but of course the Headline event causing so much Speculation is the announcement that Tim Will be stepping down as CEO to be Replaced by Saleem ramji now this is Significant for two reasons first

Vanguard's selection of Saleem marks the First time in its history that a CEO has Been selected from outside the company Marking the end of the boat era for Reference all three prior successors to Jack Bogle had all worked for him before Climbing their way to the top of the Ladder those CEOs for anyone interested Were John Brennan William McNab and of Course Tim Buckley anyway the second Reason why this is significant is that Saleem has come straight from the enemy So to speak Saleem is a veteran of black Rock with 25 years experience in the Asset management industry and it was Even believed that he could be named as The successor to current Black Rock CEO Larry Fin and if you're thinking yeah Big deal another high-profile dude in The suit getting another high-profile Job well consider that Saleem is the Former head of black Rock's Global ETF Business the very same team that pushed So hard for a spot Bitcoin ETF in the First place as a result of that push Black Rock's ibit has garnered a Staggering $18 billion in assets under Management in fact Saleem has openly Expressed his enthusiasm for Bitcoin During his time with black rock saying Quote the underlying technology that Underpins Bitcoin and blockchain is Something we're incredibly excited about Before going on to say that the lack of

An intermediary is what sparks their Excitement anywh who this change of CEOs Could be the first of many big changes To come to Vanguard in the not too Distant future according to an article By Bloomberg vanguard's board of Directors who usually just nod in Agreement with whatever balite CEOs in The room have recently begun asserting Themselves pushing for Vanguard to look At ways to boost its profits now this of Course begs the question of whether Vanguard could shift its focus and start Introducing spot Bitcoin ETFs in the Near future well the short answer is That it seems highly unlikely at least For now as we've discussed Vanguard only Invests in lowrisk assets actively Avoiding volatility well even though Bitcoin is arguably the safest Cryptocurrency of the bunch and probably The best asset out there to hold Longterm it's important to acknowledge That it does go against vanguard's tried And tested philosophy in fact vanguard's Entire focus is to try and protect Investors from taking on risks that Could cause Havoc with their portfol Folios crypto's ability to move up or Down by double digigit percentages in a Single day is exactly the sort of risk That Vanguard investors arguably want to Stay away from hence the reason why Vanguard has vowed never to offer its

Customers a spot Bitcoin ETF more to the Point Vanguard has tried to distance Itself from the crypto Market altogether This is in stark contrast to other asset Managers like Fidelity which simply Reminded those who wanted to purchase Its spot Bitcoin ETF of the risks Associated with doing so it also Contradicts the fact that Vanguard Offers Bitcoin Futures ETFs which are Much riskier products now rightfully This has angered many investors using Vanguard's platform who feel that their Funds are their own and shouldn't be Subjected to gatekeeping one of these Investors is coinbase senior engineer Manager Yuga Cola who said he will be Converting his rough 401K savings to Fidelity he's not alone here because Many Bitcoin enthusiasts using Vanguard Have also threatened to leave and switch To a different investment firm such as Fidelity or black rock it even sparked a Hash boycott Vanguard movement on social Media so then you'd think that maybe Vanguard would listen to its customers Right wrong in fact Vanguard doubled Down on its stance by removing the Option to purchase Bitcoin Futures ETFs In response however with Saleem ramji as The newly appointed CEO vanguard's Attitude towards crypto could change Further down the line recall that Vanguard's board of directors are

Pushing for the company to become more Profitable well considering that the Spot Bitcoin ETFs have brought in well Over $250 billion in trading volume this One seems like a logical option that Said Saleem has also o said that he Doesn't want to rock the boat too much When he first arrives he even announced Early doors that he has no intention of Reversing vanguard's decision on bitcoin He said quote I have heard Chief Investment officer Greg Davis's Explanation and I think it's entirely Consistent with vanguard's investment Philosophy however something else Saleem Said could have deeper meaning he Pointed out that quote the current Investor landscape is changing and that Presents opportunities to Vanguard to Further its mission of giving people the Best chance for investment success which Is more relevant today than in the Firm's 50-year history my focus will be To mobilize Vanguard to meet the moment While staying true to our core purpose Now call us crazy but that sounds to us Like Saleem wants to try an orange pill Vanguard's board of directors I mean It's hard to think of another modern Asset that has disrupted the investment Landscape as much as Bitcoin has and BTC Is famously the best performing asset of All time having gone up over 720,000 X since it debuted in 2009 but

Even if this were the case and Vanguard Suddenly pivoted to launch its own spot Bitcoin ETF it wouldn't happen anytime Soon at the very least there will need To be some further regulatory Clarity And the crypto industry will have to Become more established in order to Stand a chance against vanguard's riskof Ethos now this ties into the potential Impacts a Vanguard spot Bitcoin ETF Could have on both Vanguard itself and The crypto industry well let's start With the obvious if Vanguard does decide To launch an ETF this would be bullish For Bitcoin in fact Vanguard ETF Decision could perhaps be seen as more Bullish than all existing spot Bitcoin ETFs because it would prove that even The most skeptical investment firm Cannot say no to bitcoin forever the Possible surge in ETF inflows could then Spill more directly into the crypto Market as more people become aware of What Bitcoin actually is and learn why Things like self- custody are so Important Not only would this be good For crypto but it would also be good for Vanguard and it would even allow them to Close the gap on saleem's Old buddies Over at Black Rock heck it could even be The push Vanguard needs to overtake Black Rock in assets under management For reference Vanguard Now commands $2.6 Trillion in AUM for its us listed ETFs

Whereas Black Rock controls $2.8 Trillion it's a closer Gap than you Might think made closer when you learn That Vanguard has been closing in on Black Rock's market share for 20 of the Past 21 years on the other hand if Vanguard chooses to never reverse its Stance on bitcoin and cryptocurrency This could leave them trailing Larry Thinken Co for the foreseeable future as Bitcoin continues to gather momentum and The spot ETFs continue to outperform Vanguard would be forced to watch from The sidelines in fact this could Continue to frustrate many of vanguard's Users who may choose to jump ship at This point vanguard's board of directors Would probably have to rethink their Strategy all that being said though it's Not like Vanguard can't afford to give It all a Miss recall that it has $8.6 Trillion in AUM well the cumulative spot Bitcoin ETF volume is around $270 Billion but that's the key word Cumulative even if Vanguard was to match The number one provider grayscale it Would be looking at less than $1 billion In volume that might sound like a lot But it's essentially pocket change for a Wall Street big beast like Vanguard so Then regardless of whether it decides to Go ahead with a spot Bitcoin ETF or not It's clear that the Good Ship Vanguard Will keep sailing on regardless so

Steady As She Goes Mr Ramy okay that just about wraps it up For today's video folks so if you Enjoyed it bombard that like button Subscribe to the channel and ping that Notification Bell so you don't miss our Next one if you think others could Benefit from this content then take a Second to share this video with them and If you're looking to buy yourself some Crypto then be sure to use the coin Bureau deals page it's got trading fee Discounts of up to 60% sign up bonuses Of up to $60,000 And discounts on some of the best Hardware wallets too the link to that Treasure Trove of goodies is down below Okay thank you all so much for watching And we will see you in the next one Until then this is Guy signing off [Music]


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