Vanguard, a giant with approximately $11 trillion in assets and over 50 million clients, is exploring the possibility of opening crypto ETF trading on its platform, a move that would mark a potential shift for traditional asset management.
According to data collected by our editorial team and market analyses conducted between the first half of 2024 and 2025, retail interest in regulated instruments linked to Bitcoin and Ethereum has increased substantially following the initial approval of the first spot ETFs in the United States in October 2023.
Industry analysts note that the appearance of these products on widely-used platforms tends to quickly translate into increased trading volumes and greater focus on costs and transparency.
The move under consideration: what changes for clients
According to recent reports, the company is considering enabling trading of third-party crypto ETFs. Currently, it is not possible to trade spot ETFs on Bitcoin or Ether on the platform, and any potential opening would represent a significant development for user operations.
- Potentially interested clients: over 50 million
- Client assets: approximately $11 trillion (company estimate, updated 2025)
- Current offering: Vanguard does not manage its own crypto ETFs
- Status: evaluation in progress, no definitive decision
Why Now: Retail Demand and Competitive Pressure
The demand from retail investors is growing, while competitors have already enabled trading of spot crypto ETFs. In fact, U.S. brokers like Fidelity, Charles Schwab, and Robinhood have been offering access to spot ETFs on Bitcoin and Ethereum for months.
The market shows daily volumes on US spot ETFs that often exceed a billion dollars per product, with significant peaks on higher capitalization funds; the fees, depending on the issuer, can vary approximately from about 0.19% to over 1.00%. In this context, the focus on costs, liquidity, and transparency remains high.
Possible Ways to Enable Crypto ETFs
If approved, the enablement could proceed gradually, adopting suitability criteria and risk management calibrated to the clients’ profile. Among the possible options:
- Progressive access for advanced profiles or qualified investors
- Mandatory reading of risk awareness forms and educational informational material
- Imposition of position and value limits to contain volatility
- Selection of ETFs that meet minimum requirements for liquidity and transparency
Regulatory Requirements and Controls
Any potential opening must comply with the SEC safeguards and the strict internal risk management standards. Key points include:
- Custody and operational controls on the underlying assets, with clear disclosures in the prospectus and regulated custody solutions
- Surveillance sharing agreements to mitigate the risk of price manipulation
- Reporting procedures, best execution, and conflict of interest management
- Compliance with the disclosure rules provided by the 1933/1940 Act and the listing regulations of the exchanges
Potential Impact on Market and Regulators
The entry of Vanguard into crypto ETF trading could further enhance the integration between traditional finance and digital assets. It should be noted that the most likely effects include:
- Increased liquidity for spot ETFs on Bitcoin and Ether
- Growth in retail demand and increase in market depth
- Increase in competitive pressure on issuers and brokers in terms of fees and security standards
- Push towards further regulatory clarifications on disclosure and custody methods
Advantages and Risks for Savers
Access to crypto ETFs represents a regulated channel to gain exposure to cryptocurrencies without having to directly manage digital wallets. However, there are significant trade-offs, related to the nature of the instruments and the associated costs.
- Advantages: operational simplicity, diversification, delegated custody, and cost transparency
- Risks: high volatility, possible tracking errors, spreads, and management fees
The fees for US spot ETFs currently average between approximately 0.20% and 0.80%, with higher peaks on legacy products, thus impacting the net return, especially over long-term horizons.
Timelines: the steps before potential approval
Even with a defined regulatory framework, implementation requires a series of coordinated internal processes. Among the typical steps:
- Review of policies and update of investment guidelines
- Selection of eligible ETFs and due diligence on issuers and market makers
- Platform testing with dedicated controls for liquidity and execution capacity
- Update of contractual documentation and information for clients
- Gradual launch of the service and continuous monitoring of risks and volumes
The estimated timing ranges from a few weeks for minimal compliance to a few months for a full roll-out, depending on the governance choices made and the operational complexity.
Context and Data: What We Know So Far
Vanguard has specified that the analysis is ongoing, and any decision will be subject to a rigorous risk assessment and regulatory compliance. Currently, there are no official dates for the activation of trading, and the timeline remains indicative.
Recently reported key information attributed to Isabelle Lee confirms that the discussion is ongoing, in line with Vanguard’s traditional cautious approach towards digital assets. We will follow any developments and update the details as soon as official communications from the issuer are available.
In Brief
Vanguard is considering allowing crypto ETF trading for its clients. If confirmed, this decision could have a cross-cutting effect on retail investors, issuers, and regulators, bringing digital assets even closer to the financial mainstream.
Source: https://en.cryptonomist.ch/2025/09/30/vanguard-currency-etf-crypto-decision-for-50-million-clients/
