Chiara Bianchi
In a dramatic shift that could accelerate Wall Street’s entry into digital assets, Vanguard will now permit trading of cryptocurrency-focused funds — including those holding Bitcoin, Ether, Solana and XRP — on its platform, according to Bloomberg.
This marks a major reversal for the investment giant, which had repeatedly distanced itself from crypto products. As recently as August 2024, CEO Salim Ramji emphasized the firm had no intention of offering crypto ETFs, even after major players like BlackRock and Fidelity entered the space.
Bloomberg reports that both retail and institutional investors pushed the firm to reconsider its stance. Beginning Tuesday, users will be able to trade ETFs and mutual funds primarily invested in crypto assets directly through Vanguard.
“Crypto ETFs and mutual funds have demonstrated resilience through volatile markets, maintaining liquidity and functioning as intended,” said Andrew Kadjeski, head of brokerage and investments at Vanguard. He added that operational processes supporting these funds have matured significantly, while investor preferences continue to evolve.
A Powerful Signal for Traditional Finance
Vanguard’s decision underscores the accelerating convergence between traditional finance and the digital asset economy. Reports suggest the company had been evaluating policy changes since early autumn, signaling growing internal acceptance of the asset class.
Today, Vanguard serves more than 50 million brokerage customers managing over $11 trillion in assets, making its policy reversal one of the most significant endorsements of crypto products to date.
Rapid Growth of Crypto ETFs in the U.S.
The U.S. crypto ETF market has expanded quickly since the SEC approved spot Bitcoin ETFs in January 2024, followed by spot Ether ETFs six months later. Momentum has only increased, with funds now tracking Solana, XRP, Dogecoin, Litecoin and other major digital assets.
Bloomberg ETF analyst Eric Balchunas recently predicted that over 100 new crypto ETFs could hit the market within the next six months. As of October, the U.S. had more than 150 cryptocurrency-based exchange-traded product filings, covering 35 different digital assets.
