Vanguard Reverses Stance, Opens Platform to Crypto ETFs for 50 Million Clients
In a significant shift from its long-held skepticism, investment giant Vanguard will begin offering cryptocurrency ETFs and mutual funds on its brokerage platform starting Tuesday. This move grants access to regulated digital asset investment vehicles for its vast client base of 50 million, marking a notable change in strategy for the $11 trillion asset manager.
Key Takeaways
- Vanguard will allow trading of crypto ETFs and mutual funds on its platform from December 2, 2025.
- This decision provides access to regulated digital asset investments for Vanguard's 50 million clients.
- The firm previously maintained an anti-crypto stance, unlike many competitors.
- Vanguard will support most crypto funds meeting regulatory standards, excluding those tied to memecoins or not supported by the SEC.
- The company currently has no plans to launch its own cryptocurrency products.
A Major Reversal
Vanguard, a titan in the asset management industry with approximately $11 trillion in assets under management, has historically opposed offering cryptocurrency products to its clients. This contrasts sharply with rivals such as BlackRock and Fidelity, who have actively embraced digital assets. The decision to open its platform signifies a major strategic pivot, acknowledging the evolving investor preferences and the maturation of the regulatory landscape for digital assets.
Access to Regulated Digital Assets
According to Bloomberg, Vanguard's head of brokerage and investments, Andrew Kadjeski, stated that cryptocurrency ETFs and mutual funds have demonstrated resilience through market volatility and maintained liquidity. He also noted that the administrative processes for servicing these funds have improved, contributing to Vanguard's decision. The firm will support a wide range of crypto ETFs and mutual funds that adhere to regulatory requirements, similar to its approach with other niche asset classes like gold. However, funds linked to memecoins or those lacking SEC support will not be permitted on the platform.
Impact on the Crypto Market
This development is expected to provide a significant boost to the cryptocurrency market by offering a trusted gateway for millions of investors. Spot Bitcoin ETFs, which debuted in January 2024, have already amassed nearly $120 billion in assets under management, while Ether ETFs have grown to approximately $20 billion, according to SoSoValue data. Vanguard's endorsement, even indirectly through its platform, could further legitimize and drive adoption of regulated digital asset investments.