Starting tomorrow, Vanguard Group will allow its brokerage customers to trade cryptocurrency-focused exchange-traded funds (ETFs) and mutual funds. This marks a significant shift for the world’s second-largest asset manager, which has historically maintained a restrictive stance toward digital assets.
The move will open access to crypto funds for Vanguard’s more than 50 million brokerage customers who collectively oversee more than $11 trillion in assets. This change represents a major evolution in Vanguard’s approach to cryptocurrency investments after years of skepticism about the asset class.
🚨NEW: Bloomberg is reporting that @Vanguard_Group will roll out crypto ETF access to its brokerage clients tomorrow.
— Eleanor Terrett (@EleanorTerrett) December 1, 2025
Tracks with my reporting from September that this has been in the works for several months. pic.twitter.com/2v6SV4fOk8
A Major Shift in Investment Strategy
This decision represents a significant departure from Vanguard’s previous position on digital assets. The company has historically spoken out against cryptocurrencies, with former CEO Tim Buckley stating Vanguard would never launch a Bitcoin fund. The company’s founder, Jack Bogle, once advised investors to avoid Bitcoin “like the plague.”
The policy shift comes more than a year after Salim Ramji, formerly a top executive at BlackRock and a longtime blockchain advocate, took over as Vanguard’s chief executive. Unlike his predecessor, Ramji has expressed interest in blockchain technology and Bitcoin, suggesting his leadership has influenced this change in direction.
While Vanguard will support most crypto funds that meet regulatory requirements, the firm confirmed it will not launch its own crypto products and will continue to exclude funds linked to meme coins. “While Vanguard has no plans to launch its own crypto products, we serve millions of investors with diverse needs,” Kadjeski stated.
Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity
Andrew Kadjeski – Head of Brokerage and Investments Vanguard
Responding to Market Demand
The decision follows growing demand from both retail and institutional investors for regulated crypto exposure. Since the approval of spot Bitcoin ETFs in January 2024, these products have attracted billions of dollars in investments, making them increasingly difficult for major asset managers to ignore.
Bitcoin ETFs now collectively manage more than $142 billion, with BlackRock’s iShares Bitcoin Trust (IBIT) commanding roughly $84 billion. Ethereum ETFs joined the market a few months later, with BlackRock’s ETHA ETF now sporting $15 billion in assets.
The success of these products has created pressure on traditional financial institutions to provide access. Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, noted: “The astounding success of the ETFs added a lot to the pressure. Had Bitcoin ETFs been a flop, I don’t think they would consider lifting the ban.”
Broader Industry Implications
Vanguard’s decision may accelerate institutional adoption of cryptocurrency investments. As one of the world’s largest asset managers embraces crypto ETFs, other financial institutions that have remained hesitant might follow suit. The move also provides further legitimacy to cryptocurrencies as an investment asset class.
The White House, under President Donald Trump, has orchestrated a crypto-friendly regulatory environment, while hedge funds, pensions, and banks have increasingly allocated capital to cryptocurrency products. BlackRock recently increased its internal exposure to its IBIT spot Bitcoin ETF, with its Strategic Income Opportunities Portfolio now holding 2.39 million shares worth $155.8 million — up 14% since June.
For cryptocurrency markets, Vanguard’s policy change could potentially bring significant new capital flows. Bitcoin responded positively to the news, trading above $86,500 following the announcement.
What This Means for Investors
Vanguard customers will now have access to a regulated way to gain exposure to cryptocurrencies without directly holding the digital assets themselves. This approach addresses many of the security and custody concerns that have prevented some investors from exploring the cryptocurrency market.
Cryptocurrency ETFs offer a convenient investment vehicle that trades on traditional exchanges, provides daily liquidity, and fits within existing brokerage accounts and retirement plans. For many investors, these products provide a more accessible entry point to digital asset markets without the technical complexities of cryptocurrency wallets and exchanges.
The timing of this announcement suggests Vanguard has carefully evaluated the performance and operational aspects of crypto ETFs over the nearly two years since their introduction, waiting until they demonstrated stability before making them available to their client base.
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[…] to Genfinity, Vanguard’s decision may lead to significant new capital flows into the cryptocurrency […]