In brief
- The firm will open trading for funds holding Bitcoin, Ethereum, XRP and Solana, aligning crypto with other non-core assets it already supports.
- The move follows months of internal review and comes amid steady demand despite a broader market pullback.
- Vanguard previously sat out the rapid growth of spot U.S. Bitcoin ETFs, whose combined assets have climbed from $25 billion in early 2024 to about $125 billion.
Vanguard is opening its brokerage platform to crypto-focused ETFs and mutual funds, abandoning a stance that had kept digital-asset products off its shelves for years.
Beginning Tuesday, the firm will permit trading in funds that hold Bitcoin, Ethereum, XRP, and Solana, putting crypto exposure on the same footing as other non-core assets it already accommodates, such as gold, Bloomberg reported.
The change gives more than 50 million brokerage customers access to regulated crypto wrappers across the U.S. fund industry.
The pivot follows months of internal review and comes as client interest in digital assets has persisted through a sharp market pullback.
Eleven spot Bitcoin ETFs that debuted in early 2024 pulled in heavy inflows, lifting their combined assets to about $25 billion within the first month. Vanguard’s refusal to offer access left the firm on the sidelines as those assets swelled to roughly $125 billion in under two years.
BlackRock’s iShares Bitcoin Trust, the largest of the group, now holds about $70 billion, down from a peak near $99.5 billion, SoSovalue data shows.
While crypto represents one of the smallest fractions of BlackRock’s $13.5 trillion in assets under management globally, Vanguard—the world’s second-largest asset manager—manages roughly $11 trillion.
In July 2024, iShares veteran Salim Ramji took over as Vanguard CEO.
Unlike both his predecessor, Tim Buckley, and the company at large, Ramij is a public supporter of both Bitcoin and blockchain.
According to Bloomberg ETF analyst Eric Balchunas, it was the “first time ever” that Vanguard has hired externally for its top job, with the analyst tweeting earlier this year that he was “semi-shocked” by the move.
Ramij had worked for Vanguard’s biggest competitor, serving as head of iShares and index investments at BlackRock. Notably, Ramij oversaw the filing and logistics for IBIT.
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