Vanguard to Allow Trading of Crypto ETFs and Mutual Funds
Vanguard, the world’s second-largest asset manager, will enable clients to trade cryptocurrency exchange-traded funds and mutual funds on its brokerage platform starting Tuesday, reversing its earlier policy on digital asset ETFs. The decision will make the products available to more than 50 million clients.
A Vanguard spokesperson said the change follows sustained demand from both retail and institutional investors, adding that third-party crypto ETFs and mutual funds will be offered in a manner similar to how the firm provides access to gold-related products.
Bloomberg reported that only ETFs meeting regulatory requirements will be included, such as those tied to Bitcoin (BTC), Ether (ETH), XRP (XRP) and Solana (SOL). The firm said it will exclude memecoins and does not plan to launch proprietary crypto ETFs or mutual funds.
The spokesperson said the company serves millions of investors with varied objectives and risk profiles and aims to provide a brokerage platform that allows clients to choose the products they wish to trade.
Vanguard reported more than $11 trillion in global assets under management as of January, according to its most recent update.
Earlier stance cited concerns over volatility
Vanguard had previously declined to offer crypto ETFs on its platform, citing the assets’ volatility and speculative nature.
Former CEO Tim Buckley said in a May 2024 video that the firm did not believe a Bitcoin ETF belongs in a long-term retirement portfolio, calling it a speculative asset. Buckley announced in February 2024 that he would step down and retired at the end of that year.
The company had been against offering crypto ETFs on its platform due to concerns about volatility. Source: Vanguard
Salim Ramji, previously the head of BlackRock’s global ETF business and now Vanguard’s CEO, had also ruled out offering crypto-related products as recently as August.
Policy shift may broaden investor access to digital assets
Some users on X suggested the move could pave the way for additional investors and influence crypto markets. Crypto analyst and investor Nilesh Rohilla said he would be surprised if Bitcoin doesn’t jump “5% in this news in the next 24 hrs.”
Another X user, BankXRP, called it “another massive signal that traditional finance is fully stepping into digital assets. The wall of money is lining up.”
Vivek Sen, founder of Bitcoin public relations firm Bitgrow Lab, predicted there are “trillions incoming.”
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