Key Takeaways:
- Vanguard will now allow trading of regulated crypto ETFs and mutual funds, including products backed by Bitcoin, Ether, XRP, and Solana.
- The move reverses decades of anti-crypto policy, giving more than 50 million Vanguard clients access to digital-asset investment vehicles.
- The shift reflects rising demand and the maturity of crypto ETF infrastructure, which has grown into one of the fastest-expanding fund categories in U.S. history.
Vanguard’s stance on digital assets has long stood out as one of the most conservative in traditional finance. That changed this week as the world’s second-largest asset manager confirmed it will begin supporting crypto ETFs and crypto-focused mutual funds on its brokerage platform. The move signals a dramatic departure from its rigid, anti-crypto policy and underscores how deeply digital assets have penetrated mainstream finance.
Below is a detailed breakdown of the implications of this shift, why it matters for the broader market, and how it changes the landscape for investors.
Vanguard’s Crypto Reversal: What Exactly Is Changing
For years, Vanguard resisted pressure to integrate digital assets, even as competitors like BlackRock, Fidelity, Franklin Templeton, and Invesco aggressively expanded into crypto. Vanguard repeatedly argued that crypto was too volatile and lacked long-term investment merit.
That era is officially over.
Beginning Tuesday, Vanguard brokerage users will be allowed to trade ETFs and mutual funds that primarily hold regulated cryptocurrencies. Eligible assets include exposure to major networks such as:
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP
- Solana (SOL)
The move gives investors access to regulated products such as spot Bitcoin ETFs, ETH ETFs, diversified digital-asset funds, and crypto basket products, all of which have attracted hundreds of billions in flows across U.S. markets since 2024.
This is not a small shift. Vanguard’s brokerage arm serves more than 50 million investors, many of whom have never had direct access to crypto exposure through the platform.
Read More: CoinShares Abruptly Withdraws Multiple SEC ETF Filings Ahead of $1.2B Nasdaq Listing Pivot
Why Vanguard Changed Its Stance
The shift in institutional finance is motivated by a number of factors that are transforming the firm:
- Persistent user demand, even during market corrections
- Record-breaking ETF growth, especially in Bitcoin ETFs, now the fastest-growing ETF category in U.S. history
- Stabilization of crypto ETF infrastructure, which has proven resilient during volatility
- Competitive pressure, as BlackRock and Fidelity dominate crypto inflows
Solo spot Bitcoin ETFs have passed over $120 billion AUM in 18 months, and certain funds such as the IBIT by BlackRock, has been rated as one of the best ETFs worldwide in terms of inflows.
With crypto ETF infrastructure now tested, liquid, and highly regulated, Vanguard no longer sees digital-asset funds as an operational or compliance risk.
A Major Turning Point for Traditional Finance
Crypto ETFs Have Become Too Large to Ignore
Crypto ETFs have outpaced the early growth of gold ETFs, fixed-income ETFs, and thematic funds. Even during market downturns, trading volumes have remained strong, and liquidity depth has improved across Bitcoin, Ether, and multi-asset crypto funds.
This consistency helped convince Vanguard leadership that digital assets, when wrapped in ETF and mutual fund structures, now meet the firm’s standards for:
- Liquidity
- Operational maturity
- Regulatory oversight
- Investor protection
Even the most conservative asset managers are now acknowledging that the crypto ETF market has “institutionalized.”
A Signal to the Rest of Wall Street
Vanguard’s reversal marks a psychological milestone. The most significant traditional finance establishment is finally opening its doors to digital assets, which is an indication that crypto is not a marginal asset category but is now a component of mainstream portfolio building.
Of particular significance to the decision is the fact that:
- Vanguard manages approximately $11 trillion in client assets
- The firm’s founder, John Bogle, famously warned investors to “avoid Bitcoin like the plague”
- Vanguard historically positioned itself as the opposite of speculative investing
This adoption has seen close to all the largest asset managers in the United States such as BlackRock, Fidelity, State Street, Franklin Templeton, and WisdomTree all participate in crypto in one way.
Read More: Bitwise Confirms XRP ETF Launch Dates for Trading on NYSE in Major Crypto Milestone
What Vanguard Clients Can Expect
Access, but Not In-House Crypto Products
Vanguard will not launch its own Bitcoin or crypto ETF. Executives made that clear.
However, the firm will treat crypto ETFs the same way it treats gold ETFs and other non-core asset classes: accessible, regulated, and supported on its trading platform.
The company will continue to exclude:
- Memecoin-linked funds
- Unregulated products
- Crypto vehicles lacking SEC approval
This ensures Vanguard remains aligned with its conservative risk framework while still expanding access.