tl;dr
Vanguard, a major investment firm, has filed for a new "Vanguard Specialized Funds" with the SEC, which includes definitions for digital currency and other crypto-related terms. The company distinguishes between digital currency, digital security token, and digital utility token. Vanguard has previo...
Vanguard, a major investment firm, has filed for a new "Vanguard Specialized Funds" with the United States Securities and Exchange Commission (SEC), seeking to track the performance of a benchmark index for companies with increasing dividends over time. The filing includes definitions for digital currency and other crypto-related terms. Vanguard distinguishes between digital currency, digital security token, and digital utility token.
The company described digital currency as a digital asset that acts solely as a store of value, a medium of exchange, or a unit of account. It categorized digital currency as a digital asset that is not issued or guaranteed by any jurisdiction, central bank, or public authority. According to Vanguard, digital currency relies on algorithmic techniques to regulate the generation of new units and has transactions recorded on a decentralized network or distributed ledge.
Vanguard also offered a distinction between digital currency and digital security token, with the latter encompassing any digital asset that is neither a digital currency nor a digital utility token. Digital security token oftentimes derive its value primarily from, or represent an interest in, a separate asset or pool of assets. The digital utility token was described as a digital asset that provides access to a particular network, product, or service.
In contrast, Vanguard has expressed disinterest in spot Bitcoin ETFs due to the speculative and unregulated nature of the broader crypto market. This stance conflicts with the company's long-term investing philosophy. Furthermore, the retirement of CEO Tim Buckley and the appointment of Salim Ramji as the new CEO, who has experience in leading BlackRock’s global ETF business, has sparked speculation about a potential shift in Vanguard's stance on crypto in the future.
Noteworthy, the firm went on to offer a distinction between digital currency and digital security token. This second group encompasses any digital asset that is neither a digital currency nor a digital utility token. As submitted to the SEC, digital security token oftentimes derive its value primarily from, or represent an interest in, a separate asset or pool of assets. The last group of asset described by Vanguard is the digital utility token. This was described as a digital asset that provides access to a particular network, product, or service amongst others.
It is not known for sure what direction Vanguard is trailing with this digital asset "sensitization", but the company have previously portrayed itself as an antagonist of Bitcoin. While other top investment asset management firms like BlackRock and Fidelity tested the "waters" of spot Bitcoin ETFs in January, Vanguard vehemently clarified its lack of interest in the offering. Vanguard hinged its decision on the highly speculative and unregulated nature of the broader crypto market, adding that the company's have a conflict with its long-term investing philosophy.
Meanwhile, Tim Buckley, the current Chairperson and CEO who has been in the position for over three decades, is set to retire by the end of 2024. In preparation for his exit later this year, the company has appointed a new CEO Salim Ramji, a former executive at BlackRock. Considering his years of experience leading BlackRock’s global ETF business, Ramji’s appointment is fueling the speculation of a possible change in stance in the long run.
More about Emeren Group Ltd
Emeren Group Ltd develops, builds, operates, and sells solar energy projects. The company is headquartered in Stamford, Connecticut.
Industry: MANUFACTURING
Sector: SEMICONDUCTORS & RELATED DEVICES
Employees: 111699000
Revenue: $104,671,000
EPS: $1.852
P/E Ratio: -0.0891
Market Cap: $4.88
Dividend Yield: 3.42%
Beta: 1.128