Vanguard Mentions Cryptocurrency In New Fund Application To SEC

According to Odaily, Vanguard has mentioned digital currency in its new fund application to the U.S. Securities and Exchange Commission (SEC). The fund, known as Vanguard Specialized Funds, aims to track the performance of benchmark indices. In the submitted document, Vanguard provided some key definitions related to cryptocurrency. Vanguard describes 'digital currency' as a type of digital asset that only serves as a store of value, medium of exchange, or unit of account. It is further categorized as a digital asset that is not issued or guaranteed by any jurisdiction, central bank, or public institution. According to the document submitted by Vanguard, digital assets rely on algorithmic technology to facilitate the regulation of the generation of new units of digital assets. Interestingly, the company continues to distinguish between digital currency and digital security tokens. The latter includes any digital assets that are neither digital currencies nor digital utility tokens. The document submitted to the SEC states that the value of digital security tokens usually primarily comes from or represents its equity. The last group of assets described by Vanguard are digital utility tokens, which are described as a type of digital asset that provides access to specific networks, products, or services. Previously, the new CEO of Vanguard had stated that he would not launch a Bitcoin ETF.