Vanguard opens trading of ETFs and funds predominantly exposed to cryptocurrencies, after years of categorical refusal and despite the anti-crypto statements made by its CEO in 2024.
Vanguard’s leaders believe that crypto ETFs have demonstrated their strength, liquidity, and sufficient administrative maturity to justify this strategic shift. They add that this decision directly responds to increasing pressure from retail and institutional clients.
More than 50 million clients and $11 trillion assets will now have access to these products, potentially opening up a massive influx of capital into crypto as the global range of crypto ETFs explodes.
Succumbing to Client Pressure, Vanguard Abandons its Anti-Crypto Stance
A historic turnaround at Vanguard. The world’s second-largest asset manager will now allow trading on its platform of ETFs and mutual funds primarily holding crypto assets like Bitcoin, Ethereum, XRP, or Solana, as reported by Bloomberg. A significant strategic shift for a group that had previously stayed away from the ecosystem.
For years, Vanguard rejected any direct exposure to crypto, even going so far as to ignore bitcoin spot ETFs launched by BlackRock and Fidelity. As recently as August 2024, CEO Salim Ramji stated that no in-house crypto products were planned.
The narrative has now changed drastically. The group explains its response to growing demand, both from retail and institutional investors. Starting Tuesday, clients can trade ETFs and funds that “primarily hold cryptocurrencies“.
According to Andrew Kadjeski, head of brokerage at Vanguard, crypto ETFs have proven themselves. They have withstood volatility while ensuring liquidity, and the administrative processes to manage them are now mature. In other words: no more operational excuses to stay out of the market.
Cryptocurrency ETFs and mutual funds have been tested during market volatility periods, functioning as expected while maintaining their liquidity. Administrative processes related to managing such funds have matured, and investor preferences continue to evolve.
Access to Crypto for 50 Million Clients and Over $11 Trillion under Management
The stakes are huge. Vanguard runs the brokerage platform for over 50 million clients, with total assets exceeding $11 trillion. Opening up to crypto funds could trigger a wave of traditional capital inflow into the sector, especially from investors previously constrained by internal Vanguard restrictions.
This shift comes as the wave of crypto ETFs accelerates. After the approved bitcoin spot ETFs in early 2024 and those on Ethereum six months later, the market now offers products on XRP, Solana, Dogecoin, Litecoin, and other assets. Bloomberg estimates that over 100 new crypto ETFs could arrive in the next six months.
The Irreversible Convergence of TradFi and Crypto
Vanguard was once the last bastion of traditional finance refusing to open its doors to digital assets. Not anymore. The giant joins BlackRock, Fidelity, and most institutional players who now see crypto as a legitimate asset class with robust instruments and a clearer regulatory infrastructure.
The industry will mark the date: the week when Vanguard finally said yes. A symbolic step in the gradual merger between traditional finance and digital assets.
