The long-awaited institutional transformation of the crypto markets has finally arrived. According to reports, Vanguard, one of the largest players in traditional finance, is abandoning its long-standing anti-crypto stance and allowing trading of funds based on digital assets such as Bitcoin, Ethereum, Solana, and XRP on its platform.
Vanguard Makes a Crypto Move
Vanguard, the world's second-largest asset manager, is making a major shift in its long-standing anti-crypto stance. According to Bloomberg, the company will now allow trading of ETFs and mutual funds "primarily holding cryptocurrencies" on its platform. This decision comes as a result of a significant increase in demand from both individual and institutional investors.
Vanguard's move is noteworthy at a time when the boundaries between traditional finance and crypto markets are rapidly blurring. The company made headlines just last year when CEO Salim Ramji stated, "We are not considering launching crypto ETFs." Even as spot Bitcoin ETFs received approval in the US, Vanguard maintained its cautious approach to crypto, refusing to include these products on its platform. However, the landscape has changed. Starting Tuesday, ETFs and mutual funds based on crypto assets like Bitcoin, Ethereum, Solana, and XRP will be available for purchase and sale directly on the Vanguard platform. This move also officially opens the doors to a massive market. Vanguard is a giant that manages over 50 million brokerage accounts and oversees $11 trillion in assets.
Andrew Kadjeski, who heads Vanguard's Brokerage and Investments division, commented on this new crypto-focused platform: “Crypto ETFs and mutual funds have been tested during volatile periods and have performed as expected, maintaining liquidity. The operational infrastructure needed to support these products has matured, and investor preferences are evolving.”
Analysts say this transformation is inevitable. Since the approval of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in June 2024, the US has witnessed a significant influx of capital into crypto-based exchange-traded products. Even ETFs tracking altcoins like XRP, Solana, Dogecoin, and Litecoin have emerged. Bloomberg ETF analyst Eric Balchunas predicts that more than 100 new crypto ETFs could launch within the next six months.
Competitors are following a similar path. Vanguard's largest rival, BlackRock, still holds approximately $70 billion in its IBIT Bitcoin ETF. As crypto funds become one of the fastest-growing categories in the US investment world, it seemed increasingly difficult for Vanguard to stay out of the race.
While the new approach has gained widespread support in the crypto space, Vanguard still has no plans to create its own crypto products. Furthermore, funds classified by the US Securities and Exchange Commission (SEC) as "meme coin-linked" will be excluded from the platform. In other words, the company is implementing a controlled expansion; it's not offering full integration, but rather access within a regulatory framework.
