Vanguard — long known for its cautious, conservative stance — has formally reversed course: effective December 2025, Vanguard will allow its clients to trade third-party cryptocurrency ETFs and mutual funds on its brokerage platform.
From Rejection to Acceptance
- Until recently, Vanguard refused to support crypto ETFs. When spot Bitcoin ETFs launched in January 2024, the firm blocked trading and stood firm on its view that digital assets were “too volatile and speculative” for their traditional long-term investor base.
- With the new policy, ETFs linked to major blockchain assets — including Bitcoin (BTC), Ether (ETH), XRP, and Solana (SOL) — are now eligible for trading on Vanguard’s platform.
- Vanguard explicitly excludes high-risk products such as meme-coin funds, leveraged or futures-based crypto ETFs — in effect treating crypto funds the way it treats other non-core asset classes like gold.
- Importantly, Vanguard is not launching its own crypto ETFs or funds. It will only facilitate access to third-party regulated crypto funds.
Why the Change?
- Maturing infrastructure & fund performance data: Vanguard cites that crypto-linked funds have now “been tested through periods of market volatility, performing as designed while maintaining liquidity.”
- Strong investor demand: Both retail and institutional clients have expressed growing appetite for regulated crypto exposure — pressure that traditional firms like Vanguard can no longer ignore.
- Competitive pressure & market dynamics: As other major asset managers rolled out crypto ETFs and gained traction, Vanguard risked losing clients who sought digital-asset exposure. This may have forced a reevaluation of its prior anti-crypto positioning.
Implications for the Crypto Ecosystem
- With Vanguard’s 50-plus million clients — and some US$11 trillion in assets under management — now eligible to buy regulated crypto ETFs, a fresh wave of capital may flow into the crypto space.
- For altcoins beyond Bitcoin and Ether, inclusion of XRP and Solana in eligible ETFs could broaden mainstream exposure to a wider set of digital assets — potentially increasing liquidity and institutional participation across the ecosystem.
- For crypto exchanges and platforms (including us at Cryptorbex): this trend underscores a growing institutional-grade demand. Offering transparent, compliant on- and off-ramps — and communication around Proof-of-Reserves, as we already do — will become increasingly important to meet user expectations.
