Vanguard Opens Doors to Crypto Trading for 50 Million Clients

• Vanguard will offer third-party crypto ETFs including Bitcoin, Ethereum, XRP, and Solana starting Tuesday.
• The $11 trillion asset manager reversed its anti-crypto stance due to persistent investor demand.

The​‍​‌‍​‍‌​‍​‌‍​‍‌ world’s second-largest asset manager has changed its stance on digital currencies most notably after long investor pressure and demand. Vanguard will open the way for crypto ETFs and mutual funds on its platform starting Tuesday. This is a major policy change for the investment conservative giant. 

The company holds the management of over $11 trillion worth of assets worldwide and the client base is of more than 50 million people who will be the next beneficiaries of digital asset ​‍​‌‍​‍‌​‍​‌‍​‍‌investments.

Traditional Finance Giant Embraces Digital Assets

Vanguard’s​‍​‌‍​‍‌​‍​‌‍​‍‌ move is essentially a 180-degree turnaround from the point of view that the company executives vehemently rejected the idea of cryptocurrency inclusion in retirement portfolios and long-term investing, as being too speculative. In May 2024, ex-CEO Tim Buckley, was very critical of the area and went as far as saying that Bitcoin ETFs had no place in the retirement accounts because of the risk of volatility. 

As late as his initial period in office in August, one of the top moves Salim Ramji made while at BlackRock was to oversee the ETF business. He was also a firm no to crypto products and only recently has he changed his ​‍​‌‍​‍‌​‍​‌‍​‍‌mind.

Nevertheless,​‍​‌‍​‍‌​‍​‌‍​‍‌ the company has been forced by continuous and strong demand from retail and institutional investors to review its very restrictive policy regarding digital asset trading opportunities. The exchange will provide externally managed crypto ETFs in the same way as it now deals with gold and other commodity-based investment products for its diverse client base. 

Just the ones that conform to the regulations will be accessible, such as the ETFs that monitor the prices of Bitcoin, Ethereum, XRP, and Solana on the well-established cryptocurrency markets and ​‍​‌‍​‍‌​‍​‌‍​‍‌exchanges.

Vanguard​‍​‌‍​‍‌​‍​‌‍​‍‌ stated directly that they will not be involved with memecoins in any way and that they won’t create proprietary crypto ETFs or mutual funds under their own brand name. The head of corporate communication pointed out that this move is in line with the company’s commitment to deliver to brokerage clients a wide range of investment options suitable for their respective risk levels. 

Experts from the sector foresee that this decision might be a reason for a significant amount of fresh money to be invested into the crypto markets by cautious investors who have not had the means to get exposure via Vanguard ​‍​‌‍​‍‌​‍​‌‍​‍‌before.

Some​‍​‌‍​‍‌​‍​‌‍​‍‌ watchers say that Bitcoin is capable of skyrocketing by five percent in a day, and some others see the move as traditional finance completely embracing digital assets. The move is a message to the world that big financial institutions that were doubting the crypto market and were worried about its volatility are now okay with crypto investing, hence they are endorsing ​‍​‌‍​‍‌​‍​‌‍​‍‌it.

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