The world’s second-largest asset manager announced on Tuesday the appointment of Salim Ramji as its new CEO. Mr Ramji’s new role will be effective on July 8. Unlike his predecessor Tim Buckley and the broader company, Ramji is a known supporter of Bitcoin.
Bloomberg ETF analyst Eric Balchunas noted that this is the “first time ever” that Vanguard has hired externally for its top position. Balchunas, who was “semi-shocked” by the move, explained that previous CEOs were “internal stars” and former aides to the late founder John Bogle.
Mr. Ramji is a seasoned financial services executive with over 25 years of experience in investments, capital markets, and wealth management. He spent a decade in senior leadership roles at BlackRock Inc., departing in January 2024. Most recently, he served as Global Head of iShares & Index Investing, overseeing the management of the majority of the firm’s client assets and enhancing the iShares platform to offer a wider array of innovative, low-cost products for investors worldwide.
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But Vanguard’s Not A Bitcoin Lover
Vanguard has taken a different stance. In January, Bitcoin investors were surprised to find that Vanguard did not list Bitcoin spot ETFs from providers like BlackRock and Fidelity, citing inconsistencies with its “investment philosophy.”
Balchunas pointed out that Vanguard inherited John Bogle’s philosophy, favoring assets with intrinsic cash flow over commodities like BTC. In 2017, Bogle advised investors to “avoid Bitcoin like the plague.”
“Bitcoin is too volatile and not a store of value. It hasn’t been, and it’s very volatile,” Buckley said in a March interview. “It’s tough to see how it fits into a long-term portfolio.”
After over three decades at Vanguard, Buckley announced in February that he would retire by the end of the year, shortly after the Bitcoin ETFs went live. Many investors believed the timing was significant, suggesting Vanguard regretted missing out on the most successful ETF launch in history.
“I still think it’s unlikely that this means Vanguard will launch a Bitcoin ETF (at least in the near term),” tweeted Bloomberg Intelligence’s James Seyffart on Tuesday. “But I think Salim could change Vanguard’s stance on allowing their clients to buy spot Bitcoin ETFs on their brokerage platform.”
