Vanguard Finally Lets Users Trade Crypto later than Years of Resistance

What Did Vanguard Change—and Why Now?

Vanguard has reversed one of its most rigid policies in recent years, deciding to allow both ETFs and mutual funds that primarily hold cryptocurrencies to trade on its brokerage platform, Bloomberg reported Monday. The move follows pressure from both retail and institutional clients, marking a sharp departure from the asset manager’s previous position.

As recently as August 2024, CEO Salim Ramji said Vanguard had no plans to offer or launch crypto ETFs, repeating the company’s long-standing stance that digital assets did not fit its product lineup. The firm also declined to support the rolled out by rivals BlackRock and Fidelity earlier that year.

The new policy takes effect Tuesday and applies to funds with exposure to assets such as BTC, ether, solana and XRP. It does not mean Vanguard will create its own crypto products, but customers will now be able to purchase and trade third-party funds backed by digital assets.

Investor Takeaway

Why Is This a Meaningful Shift for U.S. Investors?

Vanguard is the world’s second-largest asset manager, servicing more than 50 million brokerage customers who overview more than $11 trillion, according to Bloomberg. For years, the firm stood as the largest holdout among major financial institutions refusing to touch crypto products. Its refusal limited access for millions of long-term investors who rely exclusively on Vanguard for retirement accounts and index strategies.

That barrier is now gone. Allowing crypto-backed ETFs and mutual funds to trade on Vanguard’s platform makes to one of the largegest retail and retirement client bases in global finance. The change also narrows the gap between Vanguard and competitors that moved earlier into the ETF wave triggered by the SEC’s approval of spot ETFs in January 2024 and spot ether ETFs that summer.

According to Bloomberg, internal reviews around crypto-product access had been underway since at least September. The firm ultimately concluded that client demand, the behavior of crypto ETFs during market swings and improvements in fund servicing made the shift workable.

“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” said Andrew Kadjeski, head of brokerage and investments at Vanguard, according to Bloomberg. “The administrative processes to service these types of funds have matured, and investor preferences continue to evolve.”

How Does This Fit Into the Wider ETF Landscape?

have expanded rapidly over the last two years. later than BTC and ether products gained approval, issuers began launching ETFs tied to assets such as XRP, Solana, Dogecoin and Litecoin. The pipeline continues to grow: Bloomberg Senior ETF analyst Eric Balchunas said last week he expects more than 100 new crypto ETFs to hit the market within the next six months.

By October, over 150 cryptocurrency-based platform-traded product filings were active across roughly 35 diverse digital assets. Vanguard’s updated policy gives these issuers access to a distribution channel previously closed off to them.

For investors, this means more freedom to build crypto allocations inside traditional portfolios, especially in retirement accounts where many savers keep the bulk of their capital. It also brings crypto ETFs closer to the status of mainstream asset classes, placed alongside equity index funds, bond funds and sector ETFs on one of the country’s most widely used platforms.

What Comes Next for Vanguard and the Broader Market?

While Vanguard’s reversal is notable, it does not signal a shift toward launching its own crypto products. The firm is expected to remain focused on index-driven strategies across equities and fixed income. But by opening its doors to third-party crypto ETFs and mutual funds, it clears a path for users who want controlled, regulated exposure without leaving the Vanguard ecosystem.

The largeger impact will likely be felt across the ETF industry. With Vanguard no longer blocking access, issuers gain a massive audience of long-term investors who tend to hold positions through market cycles. That could bolster liquidity across the entire crypto-ETF segment and support the next wave of product development.

continue to blend, and this latest policy shift removes another dividing line. For the first time, tens of millions of Vanguard customers can trade crypto funds on the identical platform where they manage their index portfolios.