Conservative giant Vanguard takes a surprising step into crypto, opening doors to digital-asset investment for millions
Vanguard, the $11 trillion asset manager long skeptical of crypto, is now allowing clients to trade crypto-backed ETFs for the first time.
What’s Changing
Vanguard, the world’s second-largest asset manager, will allow clients to trade crypto-backed exchange-traded funds (ETFs) and mutual funds starting today, December 2.
The shift, reported by Bloomberg, gives more than 50 million Vanguard brokerage customers regulated access to products holding assets such as Bitcoin (BTC), Ethereum (ETH), XRP and Solana (SOL).
The company, however, is not launching its own crypto products. Instead, it will make available third-party ETFs and mutual funds that meet regulatory standards, while continuing to exclude funds linked to highly speculative “meme-coins.” Vanguard said it has no current plans to introduce proprietary digital-asset products.
A Break From Tradition
The change marks a clear break from Vanguard’s long-held resistance to crypto investment vehicles, a stance that had set it apart from other major US asset managers like BlackRock or Fidelity.
Andrew Kadjeski, head of brokerage and investments at Vanguard, said the infrastructure around crypto-themed funds has matured.
“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” Kadjeski told Bloomberg. “The administrative processes to service these types of funds have matured; and investor preferences continue to evolve.”
Vanguard is generally considered the most conservative compared with the more innovation-focused investment managers, Fidelity and BlackRock. Still, Vanguard remains popular among retail investors due to its lower fees.
The fact that Vanguard has shifted its long-standing stance underscores how digital assets are becoming integrated into traditional investment platforms.
Since their January 2024 debut, spot Bitcoin ETFs have amassed almost $120 billion in assets, while Ethereum products have climbed to nearly $20 billion, according to SoSoValue’s data.
Why This Matters
Vanguard’s move gives millions of retail investors regulated access to crypto ETFs, signaling broader mainstream acceptance of digital assets.
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