Vanguard Expands Crypto Access to Millions of Investors

Vanguard Opens Doors to Crypto Investments

Vanguard, the world’s second-largest asset manager, will now allow its clients to trade cryptocurrency exchange-traded funds (ETFs) and mutual funds on its platform. This decision marks a significant reversal from its previous position on digital asset ETFs.

Growing Demand Drives Change

Vanguard's policy shift comes in response to increasing demand from both retail and institutional investors. The firm will provide third-party access to select crypto ETFs and mutual funds, treating them similarly to gold investments. A Vanguard spokesperson confirmed that only ETFs meeting regulatory standards, including those related to Bitcoin (BTC), Ether (ETH), XRP, and Solana (SOL), will be available.

However, the company has excluded memecoins and will not create its own crypto ETFs or mutual funds. Vanguard stated, "We serve millions of investors with diverse needs and risk profiles, aiming to provide a platform that enables them to invest in products they choose."

Past Reservations About Crypto Volatility

Previously, Vanguard had been hesitant to offer crypto ETFs, citing concerns over volatility and the speculative nature of these assets. Former CEO Tim Buckley was notably opposed, arguing that crypto assets like Bitcoin ETFs were unsuitable for long-term retirement portfolios. Buckley stepped down as CEO in February 2024, making way for Salim Ramji, the former head of BlackRock’s global ETF business, who had also initially ruled out crypto-related products.

Potential Impact on Crypto Markets

Vanguard’s shift in stance could attract a new wave of investors to the crypto market, potentially influencing asset prices. Some industry analysts speculate that Bitcoin could see a notable price increase following this news. Crypto analyst Nilesh Rohilla anticipates a 5% rise in Bitcoin’s value, while others see this as a strong indication of traditional finance embracing digital assets.