In a surprising move, Tim Buckley has announced he will step down as Chief Executive Officer of Vanguard at the end of the year. Buckley has been Vanguard’s CEO since 2017, leading the world’s largest mutual fund firm as it has grown to over $7.2 trillion in assets under management.
His departure comes on the heels of a controversial decision last month by Vanguard to ban all bitcoin exchange-traded funds (ETFs) from being traded on its platform. This blanket ban on crypto ETFs put Vanguard markedly out of step with its peers in the financial sector. Competitors like Fidelity, Schwab, and SoFi have welcomed the ability for clients to gain exposure to digital assets through SEC-approved bitcoin ETFs.
Critics have speculated that Buckley’s reluctance to embrace crypto finance for Vanguard clients may have put his leadership in jeopardy. “This reeks of a forced resignation after the unpopular bitcoin ETF decision,” said crypto investor Mike Novogratz. “Buckley failed to adapt Vanguard to the new digital era and it cost him his job.”
Vanguard’s board of directors has appointed Mortimer J. Buckley, Tim’s brother, as his successor. The move is seen as Vanguard sticking with family leadership but signals the $7.2 trillion fund is feeling pressure to revisit its strict no-crypto investment rules in order to compete with its more progressive rivals in appealing to a new generation of investors embracing digital assets.
Novogratz commented, “Let’s see if Buckley 2.0 has a more open mind on bitcoin and crypto ETFs. If not, he may end up following his brother out the door sooner rather than later.”