Vanguard, the world’s third-largest asset manager, will begin allowing crypto-focused ETFs and mutual funds on its platform on Tuesday. This marks a major shift in its long-held stance. The firm previously rejected digital assets as too volatile, but rising customer demand has now pushed Vanguard to open access to select crypto products.
Vanguard Makes Its First Major Crypto Shift
Vanguard’s decision follows months of speculation across the fund industry. The firm manages trillions in client assets and shapes broad investor behavior. Its shift now gives more than 50 million brokerage customers direct access to regulated crypto exposure. This access includes ETFs linked to Bitcoin, Ether, XRP, and Solana.
Spot Bitcoin ETFs helped set the stage for the reversal. These funds launched in January 2024 and drew billions in inflows. During this time, BlackRock’s IBIT product gained enormous attention. The ETF reached nearly $100 billion before recent outflows cut its total to roughly $70 billion. Investors continued to show interest despite Bitcoin’s sharp price corrections. That steady demand eventually pressured Vanguard to respond.
Vanguard executives monitored the development of crypto-linked ETFs throughout the year. They tracked how these products performed during extreme volatility. Executives also reviewed changes in administrative processes required to support them. Andrew Kadjeski, head of brokerage and investments, explained these factors. He said crypto ETFs demonstrated stable liquidity during turbulent periods. He also noted growing investor expectations for direct access.
The company confirmed that it will support a wide range of crypto ETFs and mutual funds. The funds must meet regulatory standards and fit the firm’s operating structure. Vanguard will treat them the same way it treats non-core assets such as gold. This policy signals a deeper shift in how the firm views alternative strategies. It also reflects growing interest among both retail and institutional clients.
Leadership Transition and Evolving Investor Needs
The change comes during a leadership transition at the firm. Vanguard appointed Salim Ramji as chief executive last year. Ramji previously held senior roles at BlackRock. He also supported blockchain exploration within that company. He now oversees Vanguard’s strategic push to match evolving investor needs.
Ramji’s arrival created expectations within the industry. Analysts saw him as more open to digital assets. The timing aligns with the firm’s new approach.
Vanguard's Approach to Crypto Access
Vanguard emphasized that it will not create its own crypto funds. The firm sees no immediate plan to launch proprietary digital products. Instead, the firm will let customers choose from existing ETFs and mutual funds issued by approved issuers. Kadjeski said the firm must accommodate diverse risk profiles. He also said millions of customers need flexible options as markets evolve.
Memecoin-linked products remain excluded under current rules. Regulators classify those tokens as high-risk. Vanguard followed those guidelines and limited access to avoid unnecessary exposure. The firm said it will continue reviewing categories as the market shifts.
Crypto-linked ETFs remain one of the fastest-growing segments in the U.S. fund landscape. They expanded rapidly even as the broader crypto market lost more than $1 trillion since early October. Investors still see value in regulated structures. These vehicles allow exposure without direct custody. Vanguard’s support adds further legitimacy to this trend.