TLDR

Vanguard now allows crypto ETFs and mutual funds on its platform

Clients can trade funds holding BTC ETH XRP and SOL starting Tuesday

Vanguard serves over 50M clients with $11T in managed assets

Firm reversed its no-crypto stance after ongoing client demand

Vanguard, the second-largest asset manager globally, will now permit trading of cryptocurrency-focused ETFs and mutual funds on its brokerage platform. This decision, reported by Bloomberg, follows a policy shift driven by rising demand from both retail and institutional clients.

Starting Tuesday, investors on Vanguard’s platform will be able to buy and sell funds that hold Bitcoin, Ethereum, XRP, and Solana. The move comes after months of internal review and is seen as a major change in approach from the firm.

Vanguard Reversal of Previous Crypto Policy

As recently as August 2024, Vanguard CEO Salim Ramji had said the firm had no plans to offer crypto ETFs. At that time, Vanguard chose not to participate in the growing spot Bitcoin ETF market, even as competitors like BlackRock and Fidelity saw strong inflows.

Vanguard had previously excluded crypto ETFs from its offerings, even after the U.S. Securities and Exchange Commission approved spot Bitcoin ETFs in January 2024 and Ethereum ETFs six months later. The new policy marks a change in direction for a firm that has traditionally focused on low-cost, index-based investing.

“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility,” said Andrew Kadjeski, head of brokerage and investments at Vanguard, as quoted by Bloomberg. He noted that servicing processes for these funds have matured and that client demand continues to evolve.

Expanded Access for Over 50 Million Clients

The platform update provides access to more than 50 million Vanguard brokerage customers, who collectively manage over $11 trillion in assets. This decision allows clients to invest in regulated funds that provide exposure to digital assets without holding cryptocurrencies directly.

Crypto ETFs and mutual funds that hold assets such as Bitcoin and Ethereum have gained traction among traditional investors, offering a regulated and tax-efficient format. Vanguard’s move puts these products on equal footing with non-core assets like gold, which are already available on the platform.

The shift aligns with growing interest in digital asset funds. According to Bloomberg, spot Bitcoin ETFs alone grew from $25 billion in assets at launch to around $125 billion in under two years. BlackRock’s iShares Bitcoin Trust now holds roughly $70 billion.

Broader ETF Market Momentum Builds

The decision comes amid broader ETF market expansion. Investors now have access to ETFs tracking not just Bitcoin and Ethereum, but also altcoins like XRP, Solana, Dogecoin, and Litecoin. Grayscale and other managers are also preparing to launch funds tracking additional assets such as Chainlink.

Bloomberg ETF analyst Eric Balchunas recently stated that more than 100 new crypto ETFs may launch in the next six months. As of October, over 150 cryptocurrency-linked ETFs had been filed, tracking more than 35 digital assets.

Salim Ramji, who became Vanguard CEO in July 2024, previously worked at BlackRock and supported the development of crypto ETFs, including the iShares Bitcoin Trust. His appointment marked a shift in Vanguard’s approach to blockchain and digital assets.

The firm’s decision to allow crypto ETFs follows a trend of traditional finance merging with digital asset markets as infrastructure and investor interest mature. Vanguard is now positioned to participate in this growing segment while maintaining its long-standing client base.