Vanguard, a prominent investment management firm with assets exceeding $7 trillion, has reportedly made an unexpected move by restricting customer access to Spot Bitcoin Exchange-Traded Funds (ETFs). 

This decision stands out as a significant departure from the increasing trend of institutional engagement and acceptance of Bitcoin-related financial products.

Vanguard has declared it has no intention of offering spot Bitcoin ETFs or related products, as reported by The Block. The firm mentioned that Bitcoin's high volatility contradicts its aim of enabling investors to achieve 'real returns' in the long run.

Customers have noted that while they are unable to buy the newly listed spot ETFs, selling shares of Grayscale's spot Bitcoin ETF, GBTC, is still possible. 

This decision by Vanguard to limit customer access came just a day after the Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs for the first time, a debut that saw over $4.6 billion in trading volume.

Additionally, other financial firms, including Merrill Lynch, Edward Jones, and Northwestern Mutual, are reportedly not offering their customers access to the eleven exchange-traded funds that the SEC recently approved for trading on national exchanges.

It remains to be seen whether Vanguard and other firms will revise their stance and allow customers to participate in the growing Bitcoin market.

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