50 Million Investors Now Have Access to Crypto ETFs Supported by Vanguard
- Vanguard Group, managing $10T in assets, will offer crypto ETF access for the first time, marking a strategic shift from its historical crypto skepticism. - The firm will facilitate third-party crypto ETFs (e.g., IBIT) via its brokerage platform, differing from competitors like BlackRock who launched proprietary products. - This move aligns with $70B+ inflows into crypto ETFs since 2024 and Trump-era regulatory clarity, including SEC's 75-day approval process for crypto funds. - Analysts predict Vanguard
Vanguard Group, the globe’s second-largest asset manager overseeing more than $10 trillion, is set to allow its clients to access cryptocurrency exchange-traded funds (ETFs) for the first time. This represents a major shift for the company, which has previously steered clear of crypto assets due to worries about market instability and unclear regulations The Crypto Basic [ 1 ]. The decision comes as client interest in digital assets rises and the U.S. regulatory landscape becomes more supportive, especially under the Trump administration’s crypto-friendly stance CryptoSlate [ 2 ].
Vanguard’s strategy will set it apart from rivals such as
This move is largely driven by the rapid uptake of crypto ETFs in 2024 and 2025. Since their introduction, Bitcoin and
Experts see this as a calculated response to evolving market conditions. Bloomberg’s Eric Balchunas pointed out that Vanguard’s “bitcoin ETF ban” is coming to an end as digital assets gain wider acceptance. With 50 million investors and a leading market share, Vanguard’s involvement could boost liquidity for Bitcoin and Ethereum ETFs, potentially transforming capital movement in both spot and derivatives markets The Crypto Basic [ 1 ]. Still, the firm is expected to focus on the largest and most liquid crypto ETFs, steering clear of smaller, more speculative tokens to reduce exposure to volatility Benzinga [ 4 ].
Regulatory shifts have been a key factor as well. The SEC’s faster approval timeline for crypto ETFs—now just 75 days—and clearer listing requirements under the Trump administration have lowered entry barriers for institutions Benzinga [ 4 ]. This is a notable change from Vanguard’s earlier position, when its ETF chief Janel Jackson criticized crypto as a “nascent asset class with limited track record and no intrinsic economic value” Benzinga [ 4 ]. The company’s latest strategy reflects a broader industry move toward more structured crypto adoption, spurred by regulatory clarity and institutional interest CryptoSlate [ 2 ].
This development could have far-reaching effects on the market. Vanguard’s participation in crypto ETFs may help accelerate mainstream acceptance, establishing digital assets as a standard part of diversified investment portfolios. Given its size and reputation for caution, Vanguard’s measured entry could influence other asset managers to follow suit. Nevertheless, the firm still faces hurdles, such as ensuring regulatory compliance and managing client expectations in a sector that remains volatile. As Balchunas remarked, “This is positive news for Bitcoin supporters, as it could unleash a wave of new liquidity for the asset” The Crypto Basic [ 1 ].
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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