- Vanguard allows BTC, ETH, XRP and SOL ETFs after years of resistance, driven by rising customer demand and stable ETF performance.
- Executives tracked liquidity and volatility as BlackRock’s IBIT growth helped push Vanguard to open access to regulated crypto products.
- Vanguard maintains no plans for its own crypto funds and excludes memecoin ETFs under current regulatory risk classifications.
Vanguard will open its brokerage platform to crypto-focused ETFs on Tuesday, according to Bloomberg, ending years of resistance after rising customer demand. The shift follows delays that frustrated investors across the U.S., as Vanguard manages trillions in assets and influences broad market behavior. The decision involves access to Bitcoin, Ether, XRP and Solana ETFs with no plans for proprietary funds.
Vanguard Sets New Direction on Crypto Access
This move comes after months of industry debate, as firms watched whether Vanguard would adjust its long-held stance. The company previously rejected crypto exposure due to volatility concerns.
However, steady demand pushed executives to study regulated products more closely. This created internal momentum that shaped the new approach. Notably, spot Bitcoin ETFs helped accelerate the change. These funds launched in January 2024 and drew billions in inflows.
BlackRock’s IBIT gained strong attention and approached $100 billion before outflows dropped it to roughly $70 billion. Vanguard monitored these trends to see how products worked during sharp price swings.
Executives Track ETF Behavior Through Volatile Periods
Andrew Kadjeski, head of brokerage and investments, said teams reviewed how crypto ETFs handled pressure. He noted that liquidity remained stable even during heavy volatility. This review guided the firm’s operational planning and highlighted customer expectations around direct access to regulated options.
As a result, Vanguard will allow approved crypto ETFs and mutual funds that meet regulatory and operational standards. The firm will treat them like non-core assets, including gold, which marks a broader shift in how it views alternative strategies.
Leadership Shift Adds Further Context
The change also aligns with leadership moves. Salim Ramji became chief executive last year after senior roles at BlackRock, where he supported blockchain research. His arrival increased expectations that Vanguard might update its view on digital assets. However, the company reiterated that it will not launch its own crypto funds.
Vanguard also excluded memecoin-linked products due to regulatory rules that classify them as high-risk. The firm plans ongoing reviews as the sector grows, noting that crypto-linked ETFs remain a fast-growing area even after the market lost more than $1 trillion since early October.
