In a landmark policy reversal, Vanguard Group has ended its blockade on cryptocurrency investment products, announcing it will now allow the trading of regulated Bitcoin and Ethereum exchange-traded funds on its brokerage platform.
What Happened
The decision, effective immediately, marks a dramatic pivot for the world’s second-largest asset manager, which had long dismissed digital assets as too speculative and volatile for long-term investors, Bloomberg reported.
The move grants Vanguard’s massive client base of over 50 million investors, who collectively steward more than $11 trillion in assets, access to some of the most popular spot crypto ETFs in the market.
This strategic about-face is a direct response to overwhelming and persistent demand from both retail and institutional clients.
Since their regulatory approval in early 2024, spot Bitcoin ETFs have rapidly accumulated tens of billions in assets, becoming one of the fastest-growing segments in U.S. fund history.
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Rival asset manager BlackRock, for instance, still holds approximately $70 billion in its iShares Bitcoin Trust (IBIT) despite a recent market correction.
“Investor preferences continue to evolve,” said** Andrew Kadjeski**, head of brokerage and investments at Vanguard, in a statement announcing the change. “Cryptocurrency ETFs have been tested through periods of market volatility, performing as designed. The administrative processes to service these funds have also matured.”
Why It Matters
The policy shift follows the appointment of Salim Ramji, a former BlackRock executive and known blockchain advocate, as Vanguard’s CEO last year.
Under the new guidelines, the firm will support a select range of crypto funds, including those holding Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL), provided they meet established regulatory standards—a treatment similar to other non-core assets like gold.
However, Vanguard is drawing a clear line. The company explicitly stated it has no plans to create its own cryptocurrency products.
Furthermore, it will continue to block funds tied to meme coins, which the Securities and Exchange Commission (SEC) has frequently criticized as high-risk securities.
“While Vanguard has no plans to launch its own crypto products, we serve millions of investors with diverse needs,” Kadjeski explained. “Our aim is to provide a brokerage platform that gives clients the ability to invest in the products they choose.”