Vanguard Prepares to Give Clients Access to Crypto ETFs

Vanguard, one of the biggest investment firms in the world, is preparing to let its brokerage clients invest in cryptocurrency exchange-traded funds (ETFs). This is a major shift for the firm, which has stayed out of crypto for years while rivals like BlackRock moved ahead.

Vanguard Warms Up to Crypto After Years on the Sidelines

Until now, Vanguard, with $10 trillion in assets under management, has avoided launching or supporting crypto products. 

The firm built its reputation on simple, low-cost funds, and many believed it would continue to ignore digital assets. The firm built its reputation on simple, low-cost funds, and many believed it would continue to ignore digital assets. 

However, things are starting to change. A recent report shows that the asset manager has started early talks with outside groups. The company is looking for ways to meet growing client demand for crypto investments. 

Unlike BlackRock, Vanguard does not plan to create its own crypto ETFs. Instead, it will likely allow customers to buy and hold existing crypto ETFs from other providers. Notably, Vanguard has yet to announce the funds it wants its clients to invest in. 

Vanguard Adapts as Demand for Crypto ETFs Grows

The timing of Vanguard, the largest institutional shareholder of Michael Saylor-led firm, Strategy move is not random. Crypto ETFs are becoming more popular as rules around them slowly become clearer. 

The U.S. Securities and Exchange Commission (SEC) has approved new listing standards. Experts say this move could bring more crypto funds to the market soon. Some analysts believe new altcoin ETFs could be launched by October, adding to the Bitcoin (BTC) and Ethereum (ETH) products already available.

This move does not mean Vanguard is going all-in on crypto. However, it is a clear signal that the company is adapting to market changes and listening to investor demand. For clients, this could open the door to more choices and easier ways to explore crypto investing.

BlackRock Makes Big Moves in Crypto

Vanguard’s biggest rival, BlackRock, has already taken big steps into crypto. The firm recently registered a new Bitcoin Income ETF in Delaware, signaling another addition to its growing list of crypto products. The company had earlier made an attempt to launch a Solana ETF, but analysts kicked against the idea. 

In August, analyst James Seyffart warned it would be unfair if the firm were allowed to launch a Solana ETF at the same time as smaller issuers. This comes as other asset managers like VanEck are moving faster by filing for ETFs linked to Solana, XRP, Dogecoin, and other altcoins. These issuers have already spent months working through the SEC process.

Against this backdrop, BlackRock has chosen to focus only on Bitcoin and Ethereum investment products, at least for now.