Vanguard Eyes Third-Party Crypto ETFs for Brokerage Clients

Vanguard plans to give brokerage clients access to third-party crypto ETFs, responding cautiously to rising investor demand for digital asset exposure.

Vanguard is preparing to expand client options. The firm plans to allow access to third-party crypto exchange-traded funds on its brokerage platform. According to Crypto in America, the decision represents a cautious statement into digital assets. As is the case with BlackRock, Vanguard doesn’t have any plans to launch its own crypto ETFs at present. Still, the move indicates that the company is responding to increasing investor demand for exposure to cryptocurrencies.

Vanguard Considers External Crypto Products Instead of Launching Its Own

Sources verified that Vanguard is not planning on introducing proprietary crypto goods. Instead, it is deciding on whether or not to give clients access to some outside ETFs. The time course for the decision is uncertain, however, and no products have yet been named. Insiders emphasized that the firm is proceeding slowly. They mentioned that in regards to 2024, market conditions and regulations have modified. Vanguard wants to explore the environment before they make any final decision on an offering.

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A press representative for Vanguard did not answer a request for comment. However, industry experts consider the exploration important. For years, Vanguard was a favorite money manager that held itself separate from its peers by staying far away from exposure to crypto. Now, under new leadership, the firm seems to be more willing to test things outside the firm. Analysts say that this demonstrates that there is a recognition that the preferences of investors are changing. The addition of crypto ETFs can help to attract a whole class of new brokerage clients.

The changing of direction is accompanied by a favorable regulatory climate. Since 2025, regulators have approached the topic of crypto from a more positive attitude. Category approves a new listing standard that would speed up the approval of ETFs The Securities and Exchange Commission recently approved a new listing standard that they say will speed up the process for approving ETFs. It also greenlighted index funds that held leading digital assets. This shift is a clear departure from what the previous administration did when it dealt with enforcement.

Vanguard Balances with Potential for Crypto ETF Expansion

Salim Ramji, the chief executive officer of Vanguard, plays a key role to this moment. He joined Vanguard after 10 years in BlackRock. At BlackRock, he was in charge of launching the Bitcoin ETF IBIT. That product has seen more than $60 billion in net inflows and today it services more than $80 billion in assets. Market watchers believe Ramji’s experience provides Vanguard with knowledge to be open to offering external ETFs even if the firm does not take the leap to launch its own.

At the July Morningstar Investment conference, Vanguard reiterated his hesitation to launch proprietary crypto ETFs. Still, he went a step back from direct answer to when asked about addition on third-party funds. Observers consider this careful phraseology to be deliberate. It implies the firm may have options open even though it retains its reputation for conservative strategies.

Meanwhile, coordination is being pushed forward by regulators. The Securities and Exchange Commission and the Commodity Futures Trading Commission will hold a joint roundtable on Monday. The heads of both agencies hope to discuss harmonizing rules on crypto oversight. Analysts consider this cooperation is unprecedented. And it could represent a turning point for financial markets and digital assets.

A paper from Paradigm, a major investment firm, stated that agency co-operation could change market structure. It was that tokenized assets and crypto derivatives may become mainstream with proper guidance. The paper also criticized the reliance on enforcement actions in the past. Instead, it called on regulators to pursue regulations to encourage innovation while preserving investor protection.