PDAXScope: Crypto fans call to #BoycottVanguard 👀

Vanguard upsets the crypto community by opting not to offer Bitcoin ETFs on its extensive trading platform. In a separate news, Bitcoin ETFs now hold nearly USD 4 billion in assets. Catch all the latest news in the crypto space in today’s issue of the PDAXScope. 🗞️ 

• Bitcoin ETFs now hold nearly USD 4B in assets 

Early data shared by Eric Balchunas, a senior ETF analyst at Bloomberg, indicates that the new ETFs have attracted more capital than the Grayscale Bitcoin Trust (GBTC), which experienced a USD 2.8 billion decrease in assets under management over a six-day period. Among the nine ETFs, Fidelity's (FBTC) and BlackRock's iShares (IBIT) have stood out, each receiving over USD 1.2 billion in inflows during the same six-day trading period. While Fidelity's ETF has slightly higher inflows, BlackRock's currently manages slightly more assets, totaling USD 1.4 billion compared to Fidelity's nearly UAS 1.3 billion.

• #BoycottVanguard trends on X after bogle-inspired etf snub 

Legendary investor Jack Bogle famously warned people to “avoid Bitcoin like the plague” in 2017. More than six years later, Vanguard Group Inc. is still stoking the crypto world’s ire by sticking to the conservative investing approach of its late founder. 

Despite the excitement surrounding the launch of the first fully-fledged Bitcoin exchange-traded funds (ETFs) in the US, Vanguard upset the crypto community by opting not to offer these new ETFs on its extensive trading platform. This decision led to the hashtag #BoycottVanguard trending on social media, with users vowing to withdraw their funds from the asset management giant. In response to the backlash, Vanguard, managing USD 8.6 trillion, remained steadfast. Not only did the firm reject Bitcoin-spot products, but it also removed futures-backed Bitcoin funds from its platform. As a result, Vanguard currently does not provide any cryptocurrency products, setting it apart from its industry counterparts.

• ‘It's possible but maybe not likely’ –BSP on cutting key rates in half

At a media briefing on Saturday, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona stated that “it's possible but maybe not likely” for the BSP to start reducing its policy rate in the first six months of the year. 

Remolona expressed concerns about supply shocks, including rice prices, potentially hindering the central bank's efforts to bring inflation back to its goal of 2% to 4% this year. Despite positive current inflation data – with a 3.9% increase in December from a year earlier, the slowest pace in 22 months – Remolona emphasized that challenges remain, saying, "We're not out of the woods." While acknowledging the favorable inflation trend, he added that monetary authorities would keep settings "sufficiently tight" until there is a sustained decrease in price gains. The central bank's key interest rate stands at a 16-year high of 6.5% following a series of 450 basis points hikes since May 2022.

• DeSantis drops out of 2024 presidential race, endorses trump

On Sunday, Ron DeSantis withdrew from the 2024 US presidential race and announced  his support for Donald Trump. This move leaves two major contenders in the Republican field as the closely watched New Hampshire primary approaches on Tuesday. In a video posted on X (formerly Twitter), DeSantis explained his endorsement, stating, "He has my endorsement because we can't go back to the old Republican guard of yesteryear." The Florida governor emphasized Trump as a preferable choice over President Joe Biden or Nikki Haley, the sole remaining challenger to Trump in the GOP primaries. DeSantis' exit is a surprising setback for a candidate who secured a second term as governor in a landslide election just two years ago and was once touted by prominent Republican donors as the future of the party.

• Hedge funds cap bumper year for profits with TCI, Citadel leading pack

Billionaire investment managers Chris Hohn and Ken Griffin spearheaded hedge funds to achieve outstanding results for clients in 2023. According to estimates from LCH Investments, the industry garnered gains totaling USD 218 billion after accounting for fees. TCI Fund Management, led by Hohn, secured the top position in LCH's rankings by generating USD 12.9 billion, closely followed by Citadel, which had USD 8.1 billion in gains. 

The annual survey focuses on money managers with the highest overall profits in absolute dollar terms since their inception, leading to a trend where the largest and most established hedge funds tend to excel. Among the top 20 firms, approximately one-third of the gains, or USD 67 billion, were generated last year. These firms manage less than a fifth of the industry's assets.

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