Vanguard Opens Platform to Crypto-Linked ETFs and Mutual Funds, Ending Years of Resistance

Vanguard, the world’s second-largest asset manager, is opening its brokerage platform to crypto-focused ETFs and mutual funds, a sharp break from years of resistance that could pull a new wave of mainstream money toward Bitcoin, Ether and other digital assets.

Starting Tuesday, the firm will let clients trade third-party funds that primarily hold cryptocurrencies such as Bitcoin, Ether, XRP and Solana, as long as the products meet regulatory standards, Bloomberg reported.

The shift applies to Vanguard’s US brokerage platform and treats crypto funds in a similar way to other “non-core” assets like gold.

Vanguard’s Scale Brings Millions Of New Investors Closer To Bitcoin ETFs

For crypto investors, the move matters because of Vanguard’s sheer scale. The company manages about $11 trillion and serves more than 50M clients worldwide, many of whom were previously unable to buy spot Bitcoin ETFs or other crypto wrappers through their existing Vanguard accounts.

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

The reversal follows nearly two years of tension between Vanguard’s public skepticism and the rapid growth of spot Bitcoin ETFs.

BlackRock’s Success Challenged Vanguard’s Crypto Skeptic Position

BlackRock’s iShares Bitcoin Trust, IBIT, has become the fastest ETF in history to reach about $70B in assets, generating hundreds of millions of dollars in annual fees and proving that demand for regulated Bitcoin exposure runs deep on Wall Street.

Vanguard had repeatedly argued that Bitcoin and other tokens were too volatile and speculative for long-term portfolios, and it initially refused to let clients trade spot Bitcoin ETFs after they launched in Jan. 2024.

Former CEO Tim Buckley said at the time that a Bitcoin ETF did not belong in a typical retirement account, reinforcing the firm’s reputation as crypto-skeptical even as rivals leaned in.

Company Will Allow Regulated Crypto ETFs But Exclude Meme Tokens

Leadership has since changed. Salim Ramji, a former BlackRock executive who once ran that firm’s giant ETF business and has spoken publicly about blockchain’s potential, took over as Vanguard’s chief executive this year.

Under his watch, Vanguard is keeping its cautious stance on issuing its own products while conceding that clients want access to crypto through the same brokerage pipes they use for stocks and bonds.

Vanguard says it will list most third-party crypto ETFs and mutual funds that meet regulatory requirements, but it will exclude products tied to memecoins and still has “no plans to launch its own crypto products.” The firm stresses that it views direct crypto exposure as speculative and wants clients to understand the risks before jumping in.

“While Vanguard has no plans to launch its own crypto products, 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.