Vanguard Opens Doors to Crypto-Linked Funds

Vanguard Makes a Major Strategic Pivot

(Source: Vanguard)

Vanguard, a leading U.S. asset manager, is making a rare strategic reversal. According to the latest Bloomberg reports, Vanguard will begin allowing trading of ETFs and mutual funds focused primarily on Bitcoin, Solana, XRP, Ethereum, and other crypto assets on its platform this week. This move marks the official entry of a traditional finance powerhouse into the crypto market. It is expected to drive a significant influx of capital into the digital asset space.

A Clear Rejection Turns Into a Dramatic Shift

Vanguard has consistently adopted a conservative approach. Even in early 2024, when BlackRock and Fidelity launched spot Bitcoin ETFs, Vanguard publicly stated it had no intention of offering similar products. As recently as August, Vanguard CEO Salim Ramji reiterated that there were “no plans to launch a crypto ETF.”

However, surging market demand has changed the landscape.

Bloomberg reports that sustained pressure from both retail and institutional clients forced Vanguard to rethink its strategy. This ultimately led to this major policy turnaround.

Trading Platform to Support Crypto ETFs and Mutual Funds

Starting Tuesday, any ETF or mutual fund with a significant allocation to crypto assets will be tradable on the Vanguard platform. This change enables investors on the platform to directly participate in mainstream crypto asset funds.

Andrew Kadjeski, head of Vanguard’s brokerage and investment division, commented that crypto ETFs and funds have already delivered the expected performance amid market volatility. He also noted that the market has matured in areas like product management and liquidity, making crypto ETFs and funds easier to service and manage.

Traditional Finance and Web3 Integration Accelerates

With more than 50 million clients and $11 trillion in assets under management, Vanguard’s policy shift sends a powerful signal to the market. This move continues the 2024 trend of TradFi (traditional finance) rapidly integrating with the crypto sector. In January, the US SEC approved the first spot Bitcoin ETFs. By June, spot Ethereum ETFs received approval. Afterward, ETFs tracking XRP, Solana, Dogecoin, Litecoin, and others soon followed. Now, investors can trade mainstream crypto asset funds. The number of available products is surging.

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Summary

Vanguard has long stood as one of the most conservative and influential asset managers in global finance. Its acceptance of crypto asset-related funds not only signals growing market acceptance but also indicates that digital assets are moving from an emerging risk category to a mainstream investment option. With a rapidly expanding ETF landscape and clearer regulatory frameworks, institutional demand continues to rise. The intersection of crypto markets and traditional finance will continue to deepen.