In a significant shift, Vanguard, the world's second-largest asset manager, is set to allow its 50 million+ clients access to cryptocurrency ETFs. This move marks a major change in the firm's long-held stance against offering direct access to digital asset products. The decision, confirmed on Tuesday, December 2, 2025, will enable Vanguard's U.S. brokerage clients to trade in third-party cryptocurrency ETFs and mutual funds. These include ETFs tied to Bitcoin, Ether, XRP, and Solana.
Vanguard's decision reflects the increasing demand for regulated exposure to digital assets and a growing acceptance of crypto as an investment. This move comes more than a year after Salim Ramji, a former BlackRock executive and blockchain advocate, became Vanguard's CEO. While Vanguard will support most crypto funds meeting regulatory requirements, it will not launch its own crypto products and will exclude funds linked to meme coins.
The significance of Vanguard's decision lies in several factors. First, it provides a regulated path for over 50 million clients to gain exposure to digital assets. Previously, Vanguard had barred its clients from accessing digital asset products, deeming them too volatile and speculative. By allowing access to crypto ETFs, Vanguard is now providing a convenient on-ramp for investors who want to participate in the crypto market without directly buying and storing cryptocurrencies.
Second, this move adds institutional legitimacy to cryptocurrencies. As one of the most conservative firms in traditional finance expands access to digital assets, the broader market may view crypto as a more accepted and stable part of diversified investment strategies. According to Andrew Kadjeski, Vanguard's head of brokerage and investments, crypto ETFs and mutual funds have performed as designed through periods of market volatility, while maintaining liquidity. He also noted the maturity of back-office processes for servicing crypto funds as investor preferences evolve.
Third, Vanguard's embrace of crypto reflects a broader institutional trend. Major financial institutions such as BlackRock, Fidelity, and Bank of America have already integrated crypto products as part of diversified investment offerings. For instance, BlackRock's iShares Bitcoin Trust ETF (IBIT), launched in January 2024, surged to $70 billion in assets in record time and generated an estimated $245 million in annual fees by October of that year. Bank of America is also reportedly set to allow its wealth-management advisors to recommend a 1% to 4% crypto allocation, focusing on spot Bitcoin ETFs like BlackRock's and Fidelity's.
The impact of Vanguard's decision on the global crypto markets could be substantial. With over $11 trillion in assets under management, Vanguard's move has the potential to significantly increase flows into listed crypto products. Hunter Rogers, co-founder of TeraHash, noted that this could accelerate the further legitimization of crypto as part of diversified portfolios. James Quinn-Kumar, marketing director at Binance ANZ, described Vanguard's decision as another milestone in crypto's mainstream adoption.
However, some analysts believe that Vanguard's move is more of a defensive posture to retain clients rather than an outright endorsement of crypto as a long-term asset. As Rogers pointed out, Vanguard is not launching its own crypto funds and continues to exclude high-volatility meme coins. This suggests that Vanguard is cautiously approaching the crypto market and prioritizing the needs of its diverse client base.
In conclusion, Vanguard's decision to offer crypto ETFs to its clients is a significant development for the crypto industry. It reflects the growing demand for regulated crypto products, adds institutional legitimacy to the asset class, and could lead to increased inflows into crypto markets. While Vanguard remains cautious about crypto, its move signals that digital assets are becoming an increasingly accepted part of the financial landscape.
