Vanguard Faces a Crypto Conundrum: Doubts Meet Bitcoin Investments

Vanguard Group Inc., which oversees $10 trillion in assets, is reportedly weighing the possibility of letting its brokerage clients access crypto exchange-traded funds (ETFs) from outside providers. This would represent a notable shift from the company’s historically cautious approach to digital assets The Block [ 1 ]. Previously, Vanguard dismissed crypto ETFs as too speculative and not appropriate for long-term investing, but is now reconsidering in light of evolving regulations and increasing client interest in digital asset exposure The Block [ 1 ]. This reconsideration comes after Salim Ramji, a known advocate for crypto and former head of BlackRock’s Bitcoin ETF, took over as Vanguard’s CEO in early 2024 The Block [ 1 ].

Vanguard’s review of crypto ETF access coincides with significant regulatory updates. In late 2025, the U.S. Securities and Exchange Commission (SEC) approved broad listing standards for commodity-based trust shares, including those tied to crypto, which shortened the approval process for qualifying ETFs from as long as 240 days to just 60–75 days CCN [ 3 ]. Along with the SEC’s recent green light for in-kind redemptions in crypto ETFs, these changes have sped up the number of altcoin ETF filings. By September 2025, the SEC was evaluating more than 92 crypto ETF applications, with

(SOL) and among the frontrunners CCN [ 3 ]. Grayscale’s Digital Large Cap Crypto Fund—which holds , , XRP, Solana, and —was the first to launch under the new, faster approval process in September 2025 CCN [ 3 ].

Vanguard’s potential policy change reflects shifting market forces. While Bitcoin ETFs saw $800 million in net outflows in August 2025, Ethereum ETFs brought in $4 billion, accounting for 77% of all crypto ETF inflows. BlackRock’s Ethereum ETF (ETHA) alone attracted $266 million in a single day, highlighting strong institutional demand CCN [ 3 ]. Vanguard has stated it does not plan to launch its own crypto ETFs for now, but is considering whether to provide access to select third-party offerings. This strategy is similar to BlackRock’s, which focuses on utilizing existing crypto ETFs rather than developing new ones The Block [ 1 ].

There is clear internal debate within Vanguard. Despite its public reservations about digital assets, the company became the largest shareholder in Strategy—a proxy Bitcoin treasury company—earlier in 2025 Reuters [ 4 ]. This position, a result of Vanguard’s index fund strategies, illustrates the tension between its stated philosophy and the requirements of index investing, which demand exposure to all index components regardless of personal views Reuters [ 4 ]. Bloomberg analyst Eric Balchunas has pointed out this contradiction, suggesting that Vanguard’s stake in Strategy may indicate a broader acceptance of crypto assets The Block [ 1 ].

The potential change in Vanguard’s approach could have far-reaching effects. As the largest fund manager in the U.S., its decision to offer crypto ETF access could help legitimize digital assets for millions of investors, especially those hesitant to hold crypto directly. Yet, obstacles persist. The SEC’s careful stance on altcoin ETFs—including delays for Solana, XRP, and

applications—reflects ongoing regulatory concerns about custody, staking, and fraud risks CCN [ 3 ]. While the SEC’s new rules are intended to speed up approvals, final decisions on many altcoin ETFs are expected by October 2025, with broader approvals likely to follow in early 2026 CCN [ 3 ].

Vanguard’s consideration of crypto ETF access also mirrors larger market movements. The SEC’s evolving regulatory stance, including initiatives like Project Crypto, points to a more pragmatic approach to integrating digital assets into mainstream finance. As firms like Grayscale, VanEck, and Bitwise push for more altcoin ETFs, Vanguard’s potential entry could accelerate adoption, especially if it leverages its extensive client network to boost demand. Ultimately, the company’s decision will depend on balancing regulatory requirements, client interests, and its commitment to long-term, low-risk investment strategies The Block [ 1 ] CCN [ 3 ].