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Vanguard will allow its 50 million US clients to trade spot bitcoin and ether ETFs starting Tuesday, reversing years of opposition to digital assets as the world’s second-largest asset manager bows to competitive pressure and surging investor demand for crypto exposure.
The decision aligns with evolving investor preferences and broader market acceptance documented in regulatory filings available through SEC ETF Filings, signaling a major shift in how traditional institutions approach crypto exposure.
For crypto investors, the news is significant because Vanguard controls more than $11 trillion in client assets. Millions of investors who previously could not purchase spot Bitcoin ETFs or other Crypto-Linked ETFs within their Vanguard accounts will now gain seamless access within the same brokerage pipelines used for stocks and bonds.
Andrew Kadjeski, head of brokerage and investments at Vanguard, emphasized the maturity of the product class.
“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” — Andrew Kadjeski, Vanguard, in comments to Bloomberg Intelligence. He added that administrative systems supporting Crypto-Linked ETFs “have matured,” and investor demand continues to evolve.
Vanguard’s pivot toward supporting Crypto-Linked ETFs follows nearly two years of public skepticism that clashed with rapid ETF market growth. Much of the pressure stemmed from the explosive success of BlackRock’s iShares Bitcoin Trust (IBIT), which became the fastest ETF in U.S. history to reach roughly $70 billion in assets.
BlackRock’s filings and disclosures, available on the iShares ETF Center, highlighted heavy institutional inflows and hundreds of millions in annual fees as a sharp contrast to Vanguard’s earlier refusal to enable spot Bitcoin ETF trading on its platform.
Former Vanguard CEO Tim Buckley had famously declared in early 2024 that Bitcoin “does not belong in a long-term retirement portfolio,” reinforcing the company’s reputation as resistant to the digital asset sector. His comments became emblematic of Vanguard’s opposition to Crypto-Linked ETFs, even as competitors rapidly expanded their offerings.
But the leadership transition in 2024 changed the firm’s direction.
Salim Ramji, a former BlackRock executive who once led its global ETF business, became Vanguard’s CEO this year and brought a noticeably different tone toward Crypto-Linked ETFs. Ramji has previously spoken publicly about blockchain’s broader potential in financial markets, and analysts believe his experience managing crypto-adjacent products at BlackRock helped soften Vanguard’s internal stance.
Under Ramji’s leadership, Vanguard will list third-party Crypto-Linked ETFs and crypto-focused mutual funds that satisfy regulatory standards while still refusing to launch its own crypto products. Vanguard stressed that this policy reflects its cautious approach.
“While Vanguard has no plans to launch its own crypto products, we serve millions of investors that have diverse needs and risk profiles, and we aim to provide a brokerage trading platform that gives our brokerage clients the ability to invest in products they choose,” — Andrew Kadjeski, Vanguard.
Kadjeski reiterated that Vanguard will continue excluding products tied to memecoins, which it views as speculative and inconsistent with its long-term investment philosophy. However, he emphasized that investors who choose Crypto-Linked ETFs should fully understand the risks.
The firm’s policy now treats Crypto-Linked ETFs similarly to other “non-core” assets such as precious metals and commodities are available for trading, but not promoted as core portfolio positions.
The decision by one of the world’s most influential asset managers to enable Crypto-Linked ETFs is expected to accelerate mainstream adoption. Analysts note that while BlackRock and Fidelity have dominated 2024’s ETF inflow race, Vanguard’s entrance significantly expands the addressable investor base for Bitcoin, Ether and other digital assets.
Market strategists say that with traditional firms incorporating digital asset products into everyday brokerage platforms, the line between conventional and blockchain-based investments continues to blur. Data from Bloomberg Markets shows rising inflows into altcoin ETFs, indicating that investor interest is broadening far beyond Bitcoin.
For crypto investors, Vanguard’s inclusion of Crypto-Linked ETFs removes a major barrier especially for retirement-oriented households and long-term savers who manage their portfolios through Vanguard’s brokerage systems.
With Vanguard now allowing Crypto-Linked ETFs, the broader U.S. financial landscape is entering a new phase. The combination of regulatory clarity, maturing fund operations and competitive pressure from peers has pushed one of the industry’s most conservative institutions to open its doors to digital assets.
The firm’s approach is cautious, controlled and regulatory-first may become a blueprint for other traditional managers evaluating whether to expand into Crypto-Linked ETFs.
For millions of investors, the shift marks the first time they can access cryptocurrencies through familiar financial channels, signaling that Crypto-Linked ETFs are no longer at the fringes of Wall Street but firmly within its mainstream.
