Vanguard finally allows trading of digital asset ETFs... withdraws opposition.

Source: BlockMedia Original Title: Vanguard Finally Allows Trading of Digital Asset ETFs…Withdraws Opposition Original Link: https://www.blockmedia.co.kr/archives/1013592 The world's second-largest asset management firm, Vanguard Group, has decided to reverse its long-held position and allow trading of ETFs and mutual funds that primarily hold digital assets on its platform.

Allowing access to regulated digital asset products for clients worth 11 trillion dollars

Vanguard plans to allow trading of ETFs and mutual funds that mainly hold selected digital assets such as Bitcoin, Ethereum, XRP, and Solana on its platform. This is a compromise that reverses the company’s long-standing view that digital assets are too volatile and speculative to be included in serious portfolios.

The background of this shift in stance is the continued demand from retail and institutional investors. The spot Bitcoin ETFs launched in January 2024 have amassed billions of dollars in assets. Despite the decline in Bitcoin prices and capital outflows, one major asset management firm, which is Vanguard's biggest competitor, holds assets worth about $70 billion in an ETF that was only around $100 billion two months ago.

Vanguard's changes collectively open up access to regulated digital asset products for more than 50 million brokerage customers managing over $11 trillion in assets.

Despite recent price adjustments, digital asset-linked ETFs remain one of the fastest-growing sectors in the history of the U.S. fund industry. Digital asset bulls will interpret Vanguard's decision as a psychological signal that traditional finance can no longer reject the influence of digital assets.

The Change of CEO and the Mature Market Environment Promote Change

The Vanguard brokerage and investment director stated that “digital asset ETFs and mutual funds have been tested to function as designed while maintaining liquidity through periods of market volatility,” adding that “the management processes for servicing these types of funds have matured and investor preferences continue to evolve.”

This change occurred about a year after Salim Ramji, a blockchain advocate and former executive at a major asset management firm, took office as CEO of Vanguard. Vanguard stated that it would support most digital asset ETFs and mutual funds that meet regulatory standards, similar to other non-core asset classes like gold.

However, Vanguard has no plans to create its own digital inventory for the time being, and funds related to meme coins as defined by the Securities and Exchange Commission will continue to be excluded.

The Vanguard spokesperson said, “Vanguard does not plan to launch its own digital asset products, but we serve millions of investors with diverse needs and risk profiles, and our goal is to provide a trading platform that allows brokerage clients to invest in the products of their choice.”