Vanguard, the world's second-largest asset manager, will allow clients to trade crypto exchange-traded funds and mutual funds on its platform starting Tuesday, changing its previous stance on digital asset ETFs.
Spurred by continued demand from retail and institutional customers, Vanguard will allow third parties to access crypto ETFs and mutual funds, much like how the corporate handles gold, a Vanguard spokesperson confirmed to Cointelegraph in a press release.
Bloomberg reported that only ETFs that meet regulatory standards will probably be included, reminiscent of Bitcoin (BTC), Ether (ETH), XRP (XRP) and Solana (SOL)-related ETFs.
The investment manager told Cointelegraph that he has excluded memecoins and created his own crypto ETFs and mutual funds.
Source: Eric Balchunas
“We serve hundreds of thousands of investors with diverse needs and risk profiles and aim to supply a brokerage trading platform that provides our brokerage customers the chance to take a position in products of their alternative,” the Vanguard spokesperson said.
According to the corporate's latest report, Vanguard is second only to BlackRock as an asset manager, with over $11 trillion in assets under management worldwide as of January.
Vanguard had ruled out crypto ETFs because of volatility concerns
Vanguard has previously opposed offering crypto ETFs on its platform, citing the volatility and speculative nature of the assets.
Its former CEO, Tim Buckley, was also strongly opposed, saying in a May 2024 video that the corporate doesn't “consider it belongs in the identical way a Bitcoin ETF belongs in a long-term portfolio of somebody saving for retirement. It's a speculative asset.”
Buckley announced his resignation as CEO in February 2024 and retired at the tip of the 12 months.
Salim Ramji, the previous head of BlackRock's global ETF business who took over as CEO of Vanguard, also ruled out offering crypto-related investment products in August.
A change of heart could open the floodgates of the crypto world
Some X users speculate that Vanguard's policy change could open the floodgates to latest investors and drive crypto prices higher. Crypto analyst and investor Nilesh Rohilla said he can be surprised if Bitcoin didn't “go up 5%” in the following 24 hours on this news.
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Meanwhile, Vivek Sen, the founding father of Bitcoin PR firm Bitgrow Lab, also predicted that “trillions are coming in.”
