Vanguard, the world’s second-largest asset manager, is set to allow its clients to start trading crypto-focused exchange-traded funds (ETFs) and mutual funds on its platform, abandoning its previous anti-crypto stance that had kept digital-asset offerings off its shelves for years.
Starting Tuesday, Vanguard will allow trading in funds that hold cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, and Solana (SOL), similar to how the firm treats gold, according to a Monday report from Bloomberg.
“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” Andrew Kadjeski, Vanguard’s head of brokerage and investments, told Bloomberg. “The administrative processes to service these types of funds have matured; and investor preferences continue to evolve.”
Notably, funds linked to memecoins or those not supported by the U.S. Securities and Exchange Commission (SEC) will remain barred. Moreover, Vanguard has no immediate plans to create its own crypto products.
The pivot provides more than 50 million Vanguard brokerage customers with access to regulated crypto funds, including those from rival asset manager BlackRock.
Nearly a dozen spot Bitcoin ETFs that launched early last year attracted impressive inflows, pushing their combined assets to nearly $120 billion, while ETH products grew to around $20 billion, per SoSoValue data.
Still, Vanguard astutely indicated that it would steer clear of such crypto-related investment products, citing volatility and the speculative nature of assets. As recently as August 2024, iShares veteran and current CEO Salim Ramji had ruled out any plans to offer crypto ETFs.
According to Bloomberg, the Wall Street behemoth’s decision to embrace crypto assets is a response to strong demand from retail and institutional clients despite a sharp market pullback.
Major Policy Shift To Open Crypto Floodgates
Some crypto commentators believe Vanguard’s change of heart could lead to a deluge of crypto ETF customers and act as a catalyst for crypto prices. Vanguard is second only to BlackRock as an asset manager, with roughly $11 trillion in global assets under management.
Crypto strategist Nilesh Rohilla noted on X that he would be shocked if the BTC price doesn’t “jump 5% in this news in the next 24 hrs.”
Vivek Sen, the founder of Bitcoin public relations company Bitgrow Lab, also forecasted that there are “trillions incoming.”
Meanwhile, X user BankXRP observed: “This is another massive signal that traditional finance is fully stepping into digital assets. The wall of money is lining up.”
Source: https://zycrypto.com/11-trillion-asset-management-giant-vanguard-to-allow-bitcoin-ether-and-xrp-etf-trading-in-stunning-about-turn/
