Bitcoin prices jumped nearly 7% Tuesday as Vanguard opened access to cryptocurrency exchange-traded funds for the first time. The asset management giant's reversal came after months of blocking clients from purchasing crypto products.
What Happened: Policy Reversal
Vanguard reversed its ban on crypto products Tuesday, allowing clients to purchase ETFs and mutual funds that primarily hold digital assets including Bitcoin, Ethereum, XRP and Solana.
The policy shift coincided with Bitcoin climbing 6.98% from $87,019 to $93,099 over 24 hours, according to market data.
Eric Balchunas, a senior ETF analyst at Bloomberg, connected the timing of Vanguard's announcement with Bitcoin's price movement. "Bitcoin jumps 6% right around US open on first day after bitcoin ETF ban lifted," he wrote. "Coincidence? I think not."
Trading volume reflected immediate investor interest, with IBIT recording $1 billion in volume during the first 30 minutes of trading. "I knew those Vanguardians had a little degen in them, even some of the most conservative investors like to add a little hot sauce to their portfolio," Balchunas said. "Vanguard saving Bitcoin was not on my 2025 bingo card I can tell you that."
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Why It Matters: Market Impact
Balchunas characterized Vanguard's reversal as significant for platform access but tempered expectations about sustained price effects.
He attributed the price jump to pent-up demand from investors who had been waiting for access through their Vanguard accounts.
The analyst cautioned against expecting continued upward pressure from traditional investors. "I think there's a small percentage of people who were pent up," Balchunas said. "That said, you can't rely on ETF Boomers for everything." He suggested the sharp price increase represents a one-time event rather than the start of sustained institutional buying through Vanguard's platform.
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