Cryptocurrency investors appear unhappy with the decision by Vanguard, a leading asset management firm, to block its clients from accessing the recently approved spot Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs).

This move, following the U.S. SEC green light for these ETFs on January 10, has stirred significant debate and dissatisfaction among crypto enthusiasts and investors. Many in the crypto community have voiced their concerns and disappointment on social media, criticizing Vanguard for its seemingly anti-innovative stance in the financial market.

Last Sunday, investor Mike Alfred shared his experience on the social media platform X and said that Vanguard "today is part of the evil empire of tradfi, unrecognizable from the ethos" its founder Jack Bogle had "when he was in his 20s and 30s."

I met the founder of Vanguard, Jack Bogle, when he was in his 90s, just a couple years before his death.

When he was a young man he was innovative and willing to shake up the system to lower fees.

Vanguard today is part of the evil empire of tradfi, unrecognizable from the…

— Mike Alfred (@mikealfred) January 14, 2024

This sentiment reflects a broader concern that Vanguard's current policies are a departure from its traditionally progressive approach.

Also Read: Bitcoin On Wall Street, Outcast in Seoul: South Korea Shows Crypto Cold Shoulder Amidst US ETF Boom

Alfred further said on X that he called the company and said that he was pulling all of his money from the accounts. He added that a company representative contacted him saying that they have received thousands of calls from customers about moving their accounts.

I called Merrill and Vanguard and told both companies that I’m pulling all of my money from all accounts. The rep at each company connected me with a senior account manager and in both cases that person apologized profusely for management’s lack of vision, admitted they owned…

— Mike Alfred (@mikealfred) January 15, 2024

Reacting to Alfred's post, Dave Weisberger, co-CEO of CoinRoutes, criticized Vanguard's decision, calling it a catastrophic marketing move and accusing the firm of hypocrisy.

Abandoning their core principle of providing investors with the most efficient means to implement their CHOICES was a catastrophic marketing decision.

Since they let investors trap themselves in GBTC for YEARS, their claims are dumb; as it stands, it’s utter hypocrisy.

— Dave Weisberger (@daveweisberger1) January 14, 2024

Vanguard's decision to exclude Bitcoin ETFs from its offerings demonstrates a conservative attitude toward the fast-changing crypto market, emphasizing enduring stability rather than immediate profits. Yet, this approach has met with disapproval from some of its clients, who perceive it as a lost chance in the expanding realm of digital assets. Some have reportedly moved their accounts to Fidelity. 

Now Read: SEC's Historic Bitcoin ETF Approval Reveals Deep Divide Within Commission

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: Shutterstock