Vanguard to Allow Crypto ETF Trading
Vanguard, one of the world’s largest asset managers, has announced it will allow its brokerage clients to trade cryptocurrency-focused platform-traded funds (ETFs) and mutual funds, effective from ahead December 2025. The landmark policy shift ends a years-long prohibition on crypto investment products, putting digital assets such as BTC, ETH, XRP, and Solana on the identical footing as traditional non-core assets like gold. This move gives Vanguard’s estimated 50 million brokerage customers access to regulated crypto wrappers, potentially opening a new wave of institutional and retail capital into the crypto markets.
New Gateway for Crypto Exposure
Under the new policy, Vanguard clients will be able to purchase and trade funds that hold crypto assets — including BTC (BTC), Ether (ETH), XRP, and Solana (SOL). These funds must meet regulatory standards; Vanguard confirmed that it does not plan to launch its own crypto ETFs or support funds tied to high-risk assets like meme coins. The change comes later than months of internal review and growing demand from clients for exposure to digital assets, despite recent volatility in the crypto market.
Vanguard’s integration of crypto ETFs signals the growing acceptance of digital assets in traditional finance. Competitors such as BlackRock and Fidelity have already viewn billions in inflows into their BTC ETFs, and Vanguard’s entry could significantly expand the pool of potential investors. The firm’s endorsement of crypto ETFs, even without issuing its own, could mark a turning point in how major asset managers perceive the role of blockchain-based assets in diversified portfolios.
Implications for Crypto Markets and Institutional Flows
Vanguard’s decision represents a major milestone in the integration of traditional finance and crypto. By allowing access to crypto ETFs, it may channel fresh long-term capital into the crypto ecosystem, potentially boosting overall market liquidity. For many investors, Vanguard’s backing of regulated crypto products adds credibility and may reduce perceived risk.
The move may also accelerate adoption of crypto in broader portfolios — as investors who previously avoided direct coin trading now gain access through a familiar investment vehicle. Industry analysts suggest that this decision could normalize crypto exposure across retirement accounts and index fund structures, positioning blockchain assets as a new frontier in diversified investment strategy.
However, Vanguard’s policy retains caution: memecoin-linked funds remain excluded, and the firm has chosen not to issue its own crypto products. For crypto markets at large, the entry of a major legacy asset manager like Vanguard could signal changing institutional sentiment and potentially mark another turning point in crypto’s journey toward mainstream acceptance.
