In a landmark shift, Vanguard Group—one of the world’s largest asset managers—is now allowing the trading of cryptocurrency-based exchange-traded funds (ETFs) and mutual funds on its brokerage platform. The policy change, effective Tuesday, marks a significant departure from Vanguard’s historically cautious stance on digital assets and opens the door to crypto investing for its more than 50 million clients.
Investors can now access a range of regulated funds tied to leading cryptocurrencies such as Bitcoin, Ethereum, XRP, and Solana. This update comes amid growing interest in digital assets, fueled in part by the success of spot Bitcoin ETFs launched earlier in 2024. Despite recent volatility, these crypto products remain one of the fastest-expanding areas in the investment landscape.
Vanguard’s decision follows increased client demand and a broader shift in the industry, as major players like BlackRock continue to see strong engagement in their crypto ETF offerings. BlackRock’s iShares Bitcoin Trust (IBIT), for example, has drawn tens of billions in assets—even amid price corrections in the crypto market.
“Cryptocurrency ETFs and mutual funds have demonstrated resilience through market ups and downs, maintaining liquidity and performance,” said Andrew Kadjeski, Vanguard’s head of brokerage and investments. He added that administrative and operational processes have matured significantly, aligning with changing investor expectations.
Though Vanguard will not launch its own crypto ETFs and continues to avoid speculative assets like “memecoins,” it now treats most crypto-linked funds similarly to alternative investments such as commodities—provided they meet regulatory standards.
This strategic update comes under the leadership of new CEO Salim Ramji, a former BlackRock executive known for his support of blockchain and digital finance. His appointment in 2024 signaled a potential evolution in Vanguard’s approach, now realized through this major policy pivot.
