Crypto ETFs News: Vanguard Approves Trading for Crypto ETFs

Vanguard’s shift permits regulated crypto ETFs on its platform, expanding access for millions while excluding memecoin-linked funds.

Vanguard’s decision to allow trading of regulated crypto ETFs marks a significant shift in its long-standing position. The move, which goes into effect on December 2, 2025, puts an end to years of resistance and gives millions of clients controlled exposure to leading digital assets through approved fund structures.

Vanguard Opens Access to Major Crypto Funds

According to Bloomberg, the platform will allow for the support of ETFs and mutual funds that hold Bitcoin, Ether, XRP, Solana, and other regulated cryptocurrencies. The firm emphasised that it is regulatory compliant and reiterated that it will not launch its own crypto products. Additionally, it reiterated its ban on funds tied to memecoins for factors such as suitability and risk considerations for long-term investors.

Demand pressures contributed to this reversal. Spot Bitcoin ETFs launched in January 2024, amassed billions before the market corrections. BlackRock’s IBIT ETF still holds some $70 billion down from nearly $100 billion two months ago. This momentum showed sustained interest from both retail and institutional segments and influenced the internal deliberations of Vanguard and led the leadership to revisit the previous restrictions.

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As the shift takes place, Vanguard’s 50 million brokerage customers, who have a collective asset exposure of over $11 trillion, gain a regulated path to digital asset exposure. Previously, the firm had prevented access to spot Bitcoin ETFs, even when their inflows were at their peak. This reversal is an indication of realization toward the broader market adoption and the maturity of administrative systems to support crypto-linked products.

New Leadership Drives Strategic Pivot

Observers attribute the shift in part to changes in leadership. More than a year after former BlackRock executive Salim Ramji became its CEO, Vanguard reevaluated its stance on financial products that are linked to the blockchain. Operational readiness, executives reasoned, had been enhanced, and investor preferences shifted towards diversified portfolios integrating digital assets.

Source: Bloomberg

Industry experts point out that crypto ETFs are one of the fastest-growing categories in the history of US funds. Even with volatility and significant outflows, their rapid accumulation of assets shows their continued interest. Analysts believe that Vanguard’s decision could bring in other conservative institutions that have been slow to embrace regulated crypto offerings.

Reports and industry blogs say the firm did an extensive internal review before finalizing the change. This review explored the changing nature of fund oversight and custodial protections and compliance frameworks. Such developments helped build confidence to support third-party crypto funds without compromising on Vanguard’s traditional risk posture while sticking with the low-cost investing principles.

In addition, the timing signals broader efforts at market stabilization. Although the price of digital assets declined over the past few months, investors were still eager to learn more about regulated structures. Crypto advocates say the move by Vanguard gives added credibility to the industry and provides psychological momentum by validating digital assets as part of a mainstream investment framework.

As a result, this shift may put additional pressure on remaining assets. If more institutions follow, market liquidity may increase across regulated products. Greater participation could also mean less exposure to unregulated markets, which had previously led to increased pressure on investors to pursue alternatives in periods of downturn, or forced liquidation in bear markets.

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