Vanguard is set to ease restrictions on crypto exchange-traded funds (ETFs).
This development, first reported on September 26 by Crypto in America, marks a significant shift for a company that has traditionally distanced itself from digital assets.
The $10 trillion asset management giant has taken a cautious stance historically, preventing clients from purchasing Bitcoin ETFs through its brokerage platform while peers like Fidelity have onboarded them.
This strategy highlighted Vanguard’s preference for stability and long-term gains over exposure to what it once viewed as speculative investments.
As per the report, Vanguard has initiated discussions with external partners regarding access for brokerage customers to certain third-party crypto ETFs.
Nevertheless, the firm is unlikely to create in-house products like its competitors.
Reasons Behind Vanguard’s Shift on Crypto
Vanguard’s updated outlook on crypto is driven by several factors, including an improved regulatory framework and the success witnessed by crypto ETFs.
Within the past year, the Trump administration has been instrumental in reshaping the US regulatory environment, pushing it towards a more pro-crypto stance.
This change is evident in the increasing collaboration between major financial regulators, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as they strive to create clearer guidelines for digital assets.
Their joint efforts have transitioned what was once an unregulated expanse into a more structured marketplace, attracting significant institutional interest and boosting growth in the crypto sector.
Additionally, the remarkable performance of Bitcoin and Ethereum ETFs has likely influenced Vanguard’s decision.
Since their launch last year, spot Bitcoin and Ethereum funds have amassed over $70 billion in inflows, raising their total assets to more than $150 billion, based on data from SoSo Value.
This success means that competitors’ crypto strategies are hard to overlook.
Industry experts, including Nate Geraci of The ETF Store, have long anticipated this outcome. He posited that Vanguard’s resistance couldn’t endure indefinitely, especially as competitors showcased the viability of crypto ETFs.
