Vanguard to Allow Crypto ETFs and Funds on Its Platform in Major Policy Shift
Vanguard Group, the world’s second-largest asset manager, will now allow exchange-traded funds and mutual funds that hold cryptocurrencies to be traded on its platform—reversing a long-standing position against digital assets.
Starting Tuesday, Vanguard customers will be able to trade approved ETFs and mutual funds that hold cryptocurrencies such as Bitcoin, Ether, XRP, and Solana. The move marks a major shift for a firm that has long argued crypto is too volatile and speculative for most portfolios, and it comes even after the crypto market has lost more than $1 trillion in value since early October.
Persistent demand from both retail and institutional investors pushed the firm to reconsider. Since their launch in January 2024, spot Bitcoin ETFs have gathered billions in assets. BlackRock’s IBIT fund, for example, holds about $70 billion, even after price declines and recent outflows.
The change opens access to regulated crypto investment products for 8 million of Vanguard’s self-directed brokerage clients. Despite recent volatility, crypto ETFs remain one of the fastest-growing categories in the history of the U.S. fund industry—a point supporters say shows traditional finance is being pulled further into digital assets.
“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” said Andrew Kadjeski, Vanguard’s head of brokerage and investments. He added that the operational systems supporting these funds have matured as investor interest continues to grow.
The decision comes more than a year after CEO Salim Ramji, a former BlackRock executive and longtime blockchain advocate, took over the firm. Vanguard says it will support most crypto ETFs and mutual funds that meet regulatory standards, similar to how it handles other non-core assets like gold.
However, the firm stressed it has no plans to launch its own crypto products, and it will continue to block funds tied to memecoins as defined by the SEC.
“We serve millions of investors with different needs and risk levels,” Kadjeski said. “Our goal is to provide a trading platform that gives clients access to the products they choose.”
Featured image from: reddit.com