Vanguard, the second-largest asset manager in the world, has opened its U.S. brokerage platform to exchange-traded funds (ETFs) and mutual funds that hold cryptocurrencies. Bloomberg reported that, starting Tuesday, clients can trade third-party funds focused on assets like Bitcoin, Ether, XRP, and Solana.
Notably, this marks a major shift for the $11 trillion asset manager, which previously stated it had no plans to offer crypto-related investment products. Vanguard had opted out of offering spot Bitcoin ETFs even after the U.S. Securities and Exchange Commission approved several in January 2024.
CEO Salim Ramji said as recently as August 2024 that crypto ETFs were not aligned with the firm’s core investment strategy. However, the company’s latest move follows growing pressure from both retail and institutional investors who want access to regulated crypto funds through traditional brokerage accounts.
Vanguard Opens Crypto to 50 Million Brokerage Clients
With over 50 million clients using its platform, Vanguard’s decision could introduce digital asset exposure to a broader investor base. Bloomberg noted that cryptocurrency funds will now be treated similarly to other non-core assets like gold within Vanguard’s platform.
“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” said Andrew Kadjeski, head of brokerage and investments at Vanguard.
He added that operational infrastructure around these products has matured, and investor demand continues to evolve. The change will apply to funds that meet regulatory requirements and are primarily backed by digital assets. Notably, some of the listed products include Bitcoin, Ethereum, XRP, and Solana ETFs.
Spot Crypto ETFs Gain Momentum
Crypto ETFs have been on a steady rise since the SEC gave them the green light in early 2024 for spot Bitcoin ETFs. Then came the spot Ether ETF, followed by new products to track Solana, XRP, Dogecoin, and Litecoin.
But up until now, Vanguard clients couldn’t get in on the action even as other firms like BlackRock and Fidelity launched super-popular crypto investment vehicles.
With this move, Vanguard is joining the club of big financial institutions opening access to regulated digital asset funds and bridging the gap between traditional finance and all that blockchain business.
The CoinRemark Team
