Vanguard to Launch Crypto ETFs for Its 50 Million Clients

Vanguard, the world’s second-largest asset manager, is preparing to allow its vast client base to begin trading cryptocurrency exchange-traded funds (ETFs) and mutual funds on its platform starting this Tuesday. This marks a significant change in its previous position regarding digital asset ETFs.

Key Takeaways

Vanguard is set to allow trading of crypto ETFs and mutual funds for its clients from Tuesday.
This decision comes in response to robust demand from both retail and institutional investors.
ETFs included will only feature those that meet regulatory standards, excluding memecoins and proprietary ETFs.
Vanguard aims to serve the diverse needs of millions of investors while maintaining a focus on compliance and risk management.

Vanguard’s 50M+ clients will soon have access to crypto ETFs

Driven by ongoing demand from both retail and institutional investors, Vanguard will now grant access to crypto ETFs and mutual funds from third parties. This approach is similar to how the firm currently treats gold investments, as confirmed by a Vanguard representative in a statement to Cointelegraph.

According to Bloomberg, only those ETFs that comply with regulatory standards will be available, including those linked to Bitcoin, Ether, XRP, and Solana. However, Vanguard has decided against offering its own crypto ETFs and mutual funds or including memecoins in its offerings.

Crypto ETFs introduction
Source: Eric Balchunas

“Our mission is to meet the diverse needs and risk profiles of millions of investors,” stated the Vanguard spokesperson. “We strive to provide a brokerage trading platform that empowers our clients to invest in the products they choose.”

Vanguard is currently ranked second only to BlackRock, boasting over $11 trillion in assets under management globally, as reported in the company’s latest figures from January.

Background on Vanguard's Previous Stance Against Crypto ETFs

Previously, Vanguard was hesitant to introduce crypto ETFs on its platform, citing concerns over volatility and the speculative nature of these assets. Former CEO Tim Buckley was particularly vocal against this, stating in a May 2024 video that he did not believe assets like Bitcoin should be in a long-term retirement portfolio, calling them speculative investments. Buckley announced his retirement plans in February 2024 and officially stepped down at the end of that year.

Vanguard’s concerns about volatility
Source: Vanguard

Salim Ramji, who previously led BlackRock’s global ETF division and took over as Vanguard's CEO, had also expressed resistance to introducing crypto-related investment products as recently as August.

Related: Vanguard users threaten to close accounts after firm blocks spot Bitcoin ETFs

This Shift Could Attract New Investors

Many users on social media platform X speculate that Vanguard's decision to embrace cryptocurrency could lead to a surge of new investors entering the market and potentially driving up crypto prices. Crypto analyst Nilesh Rohilla suggested that Bitcoin might see a price increase of “5% in the next 24 hours” due to this news. Another user, BankXRP, noted that this move signals a substantial shift of traditional finance fully engaging with digital assets, asserting that “the wall of money is lining up.”

Meanwhile, Vivek Sen, founder of the Bitcoin public relations firm Bitgrow Lab, foresees “trillions incoming” to the crypto market.

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