Vanguard Backtracks, Vows Not to Join the Train

Technology

Vanguard Embraces AI Revolution in $13 Billion Stock Funds Ahead of World AI Cannes Festival – Crypto News

Published

2 years ago

February 6, 2024

Dripp

Vanguard has jumped the artificial intelligence bandwagon after integrating machine learning into its managed stock funds. According to a Bloomberg report, the American registered investment advisor has set in AI across several active stock funds with a combined $13 billion under management. This comes at a time when the World AI Cannes Festival is just around the corner, making the move in tandem with market sentiments.

Vanguard integrates machine learning for actively managed stock funds

Vanguard Group has been subtly implementing machine learning in several actively managed stock funds with a total value of $13 billion. According to Bloomberg reports, the move is quite opposite to how Vanguard functions as it is “known for its traditional approach to investing and hesitancy to pursue cutting-edge technology like cryptocurrency”.

The report also states that approximately a year ago, during the ChatGPT frenzy that engulfed global markets, the second-largest asset manager in the world had artificial intelligence into four factor-based funds. The wager is that systematic techniques will become more adaptable to shifting market and economic situations with the aid of new linguistic and data-analysis skills.

Vanguar’s move also comes at a time when the World AI Cannes Festival is just around the corner. The World AI Cannes Festival brings together the individuals and organizations that are presently investing and upholding the global AI sector. The move now positions Vanguard in tandem with other market players.

Vanguard’s AI integration opposite to its traditional approach, is Bitcoin ETF next?

Vanguard had already declared its intention to avoid investing in cryptocurrencies. The company still does not provide Bitcoin futures products as part of its brokerage services. Additionally, it is not making any investments in exchange-traded funds for spot bitcoin.

The company made it clear that this decision is in line with the organization’s goal. Vanguard experienced numerous social media backlash after the decision. The lack of Bitcoin-related products on the banking giant’s platform infuriated many. However, it seems like it is changing its methods a bit. The AI integration is a solid example that Vanguard might be rethinking a lot of its decisions.

Will Vanguard allow Bitcoin ETFs soon?

Though Vanguard has usually stuck with its traditional style of trading, it seems like things might be notching up a bit. With the AI integration, the American registered investment advisor has proven that it can also embrace modern methods. However, it still hasn’t made clear if it will allow the trade of Bitcoin ETFs on its platform. The overall inflows of the firm seem thriving despite this decision, however staying away from a heavily used Bitcoin ETF might not be in the best interest of the firm. CoinGape had also previously reported that Vanguard might reconsider its position on the Bitcoin ETFs after an X report showed the firm’s reps apologize for their previous crypto skepticism.