- Vanguard will now allow trading of Bitcoin and crypto ETFs, reversing years of opposition.
- More than 50 million customers with over $11T in assets will gain access to regulated crypto exposure.
- The move comes amid rising institutional demand and rapid growth of spot Bitcoin ETFs.
Vanguard Group, long known as one of crypto’s biggest skeptics, has officially reversed its stance. Starting Tuesday, the asset manager will allow its brokerage customers to trade bitcoin and crypto-linked ETFs and mutual funds — a major policy shift after years of blocking retail investors from accessing digital-asset products through its platform. The move marks a turning point for the world’s second-largest asset manager as crypto demand accelerates across the global financial system.
A Major Platform Opens to Regulated Bitcoin Exposure
Bloomberg reports that Vanguard will now support ETFs and mutual funds that primarily hold select cryptocurrencies, including Bitcoin. For years, the firm insisted digital assets were too volatile and speculative for long-term, diversified portfolios. But the approval of spot Bitcoin ETFs in early 2024 — which attracted billions in inflows — appears to have rewritten the playbook. BlackRock’s iShares Bitcoin Trust alone peaked near $100 billion in assets earlier this fall and still manages roughly $70 billion even after recent price softness. Bitcoin ETFs give investors exposure to BTC without the burden of custody, offering a straightforward way to access the asset through a regular brokerage account.
50 Million Vanguard Users Gain Access to Crypto Funds
Vanguard’s updated policy opens the crypto ETF market to more than 50 million customers holding over $11 trillion in assets. According to Andrew Kadjeski, the firm’s head of brokerage and investments, crypto-linked funds have demonstrated resilience through multiple rounds of volatility while maintaining solid liquidity. Behind the scenes, he said, operational support for servicing crypto products has matured significantly. The shift also follows the appointment of new CEO Salim Ramji — a longtime blockchain advocate and former senior BlackRock executive — who took over last year and has been gradually modernizing the firm’s approach to digital assets.
Not Everything Makes the Cut — No Meme Coin Funds
While Vanguard will now support most regulated crypto ETFs and mutual funds, the company made clear it has no intention of launching its own crypto products. It will also continue to block funds tied to meme coins, staying aligned with its long-standing philosophy of avoiding highly speculative instruments. Even with those restrictions, crypto-linked ETFs are still one of the fastest-growing product categories in U.S. fund history. Institutional interest is increasing as well — BlackRock recently boosted its internal exposure to its IBIT spot Bitcoin ETF, now holding 2.39 million shares worth more than $155 million. Bitcoin jumped above $86,500 following the news of Vanguard’s policy shift.
