Vanguard Reverses Course, Opens Door to Crypto ETFs and Mutual Funds

The world’s second-largest asset manager Vanguard will start allowing clients to trade crypto ETFs and mutual funds on its platform starting Tuesday. This is a sharp shift from its long-held opposition to digital asset products. 

Vanguard noted that customer demand from both retail and institutional users pushed the firm to adjust its stance. Access will apply to third-party crypto funds in a manner similar to how Vanguard already manages gold-related products.

Bloomberg analyst Eric Balchunas reported that only ETFs meeting regulatory requirements will be available, including those linked to Bitcoin, Ether, XRP and Solana. 

Vanguard boasts more than $11 trillion in global assets under management as of January. The firm’s change in policy carries considerable weight across the broader financial industry.

A Departure From Earlier Views

For years, Vanguard resisted offering crypto ETFs on its platform, pointing to price swings and the speculative nature of digital assets. Former CEO Tim Buckley repeatedly stated that such products did not fit the needs of long-term retirement savers. In a video released in May 2024, he argued that a Bitcoin ETF did not belong in a traditional portfolio built for stability.

Buckley stepped down in February 2024 and retired later that year. His successor, Salim Ramji, previously the head of BlackRock’s global ETF division, also held a cautious view on crypto products. The sudden change in policy is one of the first major strategic shifts since Ramji took over.

Market Reactions and Rising Expectations

The announcement has resulted in several speculations across social media platforms. Some traders believe the decision could draw in a fresh wave of investor interest and add momentum to the broader crypto market. 

Analyst Nilesh Rohilla said he would be surprised if Bitcoin failed to climb at least 5% within a day of the news. Another user, BankXRP, called the move a strong signal that large financial institutions are moving further into digital assets, suggesting more capital could follow.

Vivek Sen, founder of Bitgrow Lab, predicted that the move could eventually lead to inflows measured in the trillions. While such forecasts remain highly optimistic, many traders view Vanguard’s reversal as another step in the steady shift of traditional finance toward broader crypto adoption.