The firm previously steered clear of crypto products, including spot Bitcoin ETFs launched by BlackRock and Fidelity.
Crypto News
Vanguard will allow funds holding cryptocurrencies, including Bitcoin, Solana, XRP and Ethereum, to trade on its platform starting Tuesday. The world's second-largest asset manager reversed its previous stance against crypto-related products, according to Bloomberg reporting.
The firm previously steered clear of crypto products, including spot Bitcoin ETFs launched by BlackRock and Fidelity. CEO Salim Ramji stated as recently as August 2024 that Vanguard had no plans to offer crypto ETFs to clients.
Demand from both retail and institutional clients drove the decision to allow ETFs and mutual funds primarily holding cryptocurrencies on the platform. Andrew Kadjeski, head of brokerage and investments at Vanguard, said cryptocurrency funds have been tested through periods of market volatility while performing as designed and maintaining liquidity.
Administrative processes to service these fund types have matured according to Kadjeski, while investor preferences continue evolving. The platform services more than 50 million brokerage customers managing over $11 trillion in assets.
Vanguard had been weighing changes to its crypto product policies since at least September, according to earlier reports. The reversal represents another example of traditional finance and digital assets merging as institutional adoption accelerates.
Crypto ETFs rolled out gradually in the U.S. after SEC approval of spot Bitcoin ETFs in January 2024, followed by spot Ether ETFs six months later. Momentum has increased with investors now able to buy ETFs tracking XRP, Solana, Dogecoin and Litecoin, among others.
Bloomberg Senior ETF analyst Eric Balchunas expects over 100 new crypto ETFs will launch in the next six months. There were more than 150 cryptocurrency-based exchange-traded product filings tracking 35 different digital assets as of October.
The Wall Street behemoth embracing digital assets counts as one more sign that worlds of traditional finance and blockchain technology continue to converge. Vanguard's massive client base and assets under management could significantly expand retail and institutional access to cryptocurrency exposure through regulated investment vehicles.
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