Vanguard Opens Platform to Crypto ETFs and Mutual Funds, Marking a Strategic Shift
Vanguard allows clients to trade crypto ETFs and mutual funds on its U.S. platform.
The firm opens access to regulated crypto funds as demand for digital assets grows.
The company remains cautious, offering third-party crypto funds but no own crypto products.
Vanguard, the world’s second-largest asset manager, is changing its approach to cryptocurrencies. Starting Tuesday, the firm will allow clients to trade crypto-focused ETFs and mutual funds on its U.S. brokerage platform. This includes digital assets like Bitcoin, Ether, XRP, and Solana, marking a clear departure from the company’s earlier resistance to crypto, as per a report by Bloomberg.
Vanguard has maintained a reserved position on cryptos over the years due to their volatility and speculative nature. But with rising demand for regulated crypto products, Vanguard has opened its platform for third-party crypto funds. Such funds have to comply with regulatory requirements prior to their offering to clients.
Vanguard Responds to Growing Popularity of Crypto ETFs and Funds
Vanguard’s decision is important considering the size of the company. This company handles approximately $11 trillion in assets and maintains over 50 million clients across the world. This shift enables such clients to be introduced to crypto-oriented ETFs and mutual funds. Most of these clients were unable to invest in crypto assets with Vanguard in the past.
The move comes after the rising popularity of crypto ETFs, which are becoming a more popular choice among mainstream sources of funds. In the case of the iShares Bitcoin Trust at BlackRock, it has steadily risen to become one of the biggest ETFs, growing assets to $70 billion. Regulated crypto exposure has proven to be in demand, and Wall Street institutions have rushed into the field.
Source: Bloomberg
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According to Andrew Kadjeski, the head of brokerage and investments at Vanguard, crypto ETFs and mutual funds have survived market volatility. Irrespective of market volatility, these products have been operating as planned, and they have retained liquidity.
Kadjeski said that the management of these funds through administrative processes has matured and is more suitable for mainstream investors.
Third-Party Crypto Funds Allowed, Speculative Assets Excluded
Vanguard is not planning to introduce its own crypto products, even though the company is currently offering third-party crypto products. The company will keep offering access to funds that comply with regulatory standards but will not offer products associated with more speculative assets, including memecoins. Vanguard is still cautious regarding direct exposure to cryptocurrencies, which it considers extremely speculative.
The shift to enable crypto-specific ETFs and mutual funds is indicative of Vanguard acknowledging the increasing demand to have exposure to digital assets. Nevertheless, the company is rather conservative in its operations, especially in the context of introducing its crypto products. Vanguard emphasizes that people have to be aware of the risks involved and then invest in cryptocurrencies.
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Filed under: Bitcoin - @ December 2, 2025 12:30 pm