Vanguard Reverses Course, Will Allow Clients Access to Crypto ETF Trading

Vanguard Group will allow cryptocurrency ETFs and mutual funds to trade on its brokerage platform starting Tuesday, reversing its longstanding opposition to digital assets despite recent market volatility, Bloomberg reported Monday.

The world's second-largest asset manager will permit ETFs and mutual funds primarily holding Bitcoin, Ether, XRP, and Solana to be traded by its more than 50 million brokerage customers, who collectively oversee over $11 trillion in assets. The move marks a significant policy shift for a firm that has consistently argued cryptocurrencies are too volatile and speculative for serious portfolios.

The decision comes as the crypto market has shed more than $1 trillion in value since early October, with Bitcoin falling from recent highs above $100,000 to current levels in the mid-$80,000s following Monday's sharp selloff.

"Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity," said Andrew Kadjeski, head of brokerage and investments at Vanguard, Bloomberg reported. "The administrative processes to service these types of funds have matured; and investor preferences continue to evolve."

Persistent retail and institutional demand appears to have driven the reversal. Since launching in January 2024, spot Bitcoin ETFs have accumulated billions in assets. BlackRock's IBIT, the largest Bitcoin ETF, currently holds approximately $70 billion, down from roughly $100 billion two months ago but still representing one of the most successful ETF launches in history.

The policy change follows a September report that Vanguard was reconsidering its stance and comes more than a year after Salim Ramji, a former BlackRock executive and blockchain advocate, became Vanguard's chief executive officer.

Vanguard emphasized it has no plans to launch its own cryptocurrency products and will exclude funds tied to memecoins as defined by the Securities and Exchange Commission. The firm will treat crypto ETFs and mutual funds similarly to other non-core asset classes like gold, supporting most products that meet regulatory standards.

"We serve millions of investors that have diverse needs and risk profiles, and we aim to provide a brokerage trading platform that gives our brokerage clients the ability to invest in products they choose," Kadjeski said.

Vanguard's capitulation marks a psychological milestone for the digital asset industry, signaling that even traditionally conservative financial institutions can no longer ignore client demand for regulated cryptocurrency exposure. The firm had been the last major U.S. brokerage to resist offering crypto ETF access.