In a notable shift in strategy, Vanguard has announced the opening of its brokerage platform to crypto-focused exchange-traded funds (ETFs) and mutual funds, allowing for trading in funds that include Bitcoin, Ethereum, XRP, and Solana. This move marks a departure from the firm’s previous stance, which had kept digital-asset products off its shelves for years. According to reports, the decision aligns crypto assets with other non-core investments, such as gold, that Vanguard already supports.
Beginning Tuesday, this change will provide more than 50 million brokerage customers access to regulated crypto wrappers, expanding their investment options within the U.S. fund industry. The firm’s pivot follows several months of internal review and comes at a time when client interest in digital currencies has remained strong, despite a broader market pullback.
Vanguard’s hesitance to engage with the rapidly growing sector of spot U.S. Bitcoin ETFs had left it on the sidelines as these financial products saw significant inflows. In early 2024, eleven spot Bitcoin ETFs combined garnered about $25 billion in assets within their first month. However, the total assets in this space have surged to around $125 billion over the course of less than two years.
BlackRock’s iShares Bitcoin Trust, the largest in the group, now reportedly holds approximately $70 billion, although this is down from a peak of nearly $99.5 billion, according to SoSovalue data. While cryptocurrencies represent a small fraction of BlackRock’s massive $13.5 trillion in assets under management, Vanguard, the world’s second-largest asset manager, oversees about $11 trillion.
The strategic pivot comes under the leadership of Salim Ramji, who took the helm as Vanguard CEO in July 2024. Ramji’s background includes prior leadership roles at BlackRock, where he managed iShares and index investments and was directly involved in the development of their Bitcoin products. Unlike his predecessor, Tim Buckley, Ramji is a public supporter of both Bitcoin and blockchain technology, suggesting a more open approach to digital assets moving forward.
This latest development in Vanguard’s investment offerings reflects a broader trend in the financial industry, where longstanding skepticism toward cryptocurrencies is giving way to increased acceptance and integration of digital assets into mainstream investment strategies.
