Vanguard mentioned digital currency in a new fund filing with the U.S. SEC. The fund is Vanguard Specialized Funds, which aims to track the performance of a benchmark index. In the filing, Vanguard mentioned digital currency and also provided some key definitions related to cryptocurrencies.
Vanguard describes "digital currency" as a digital asset that only acts as a store of value, medium of exchange, or unit of account. It is further classified as a digital asset that is not issued or guaranteed by any jurisdiction, central bank, or public institution. According to the filing submitted by Vanguard, digital assets rely on algorithmic technology to facilitate the regulation of the generation of new units of digital assets.
It is worth noting that the company continues to distinguish between digital currencies and digital security tokens. The second group includes any digital asset that is neither a digital currency nor a digital utility token. The filing submitted to the U.S. SEC stated that the value of a digital security token is generally derived primarily from or represents its equity. The last group of assets described by Vanguard is digital utility tokens, which are described as digital assets that provide access to a specific network, product, or service.
Earlier news, the new Vanguard CEO had stated that he insisted on not launching a Bitcoin ETF. (CoinGape)