Vanguard To Allow Trading Of Crypto ETFs On Its Platform
Vanguard is finally letting clients trade crypto ETFs, but it still isn’t launching its own.
Vanguard will allow its brokerage customers to trade cryptocurrency ETFs starting Tuesday, according to a Bloomberg report published late Monday.
The move marks a sharp reversal from January 2024, when the firm famously refused to let clients trade the newly launched spot Bitcoin ETFs and even removed access to Bitcoin futures ETFs. At the time, Vanguard said crypto assets did not align with its philosophy of long-term investing.
Six months later, Vanguard named Salim Ramji as CEO. Ramji previously ran iShares and index investing at BlackRock—the same BlackRock that sponsors the iShares Bitcoin Trust (IBIT), now the most popular crypto ETF with roughly $70 billion in assets.
Seventeen months into Ramji’s tenure, Vanguard is now opening the crypto door. Customers will be able to buy and sell spot Bitcoin ETFs and other crypto-linked products on the platform, including ETFs tied to ether, Solana, and XRP.
Funds tied to meme coins will remain restricted, and Vanguard has no plans to launch its own crypto products anytime soon, Bloomberg reported.
Hard to Justify
Vanguard’s shift may reflect a simple business reality. Even if the firm sees limited long-term value in crypto, restricting its more than 50 million clients from a fast-growing segment of the fund market was becoming increasingly difficult to justify.
But whether this move actually drives new demand remains to be seen. Vanguard investors are known to follow traditional index-investing principles, with a focus on stocks and bonds. That base may not have strong appetite for crypto exposure.
Vanguard customers also haven’t missed much by sitting out so far. Bitcoin and other crypto assets have been stuck in a deep correction, and investors in IBIT today are collectively only marginally above water after heavy buying near the highs.
Despite broader acceptance, crypto remains divisive. Some view it as a foundational technology for future financial systems. Others, including Vanguard until now, have questioned its utility.
Vanguard’s new policy doesn’t resolve that debate. It simply acknowledges that a major slice of the ETF market exists, and that investors should be able to access it if they choose.
