Vanguard, the world’s second-largest asset manager, is set to enable its clients to begin trading crypto exchange-traded funds and mutual funds on its platform starting Tuesday, marking a shift from its previous stance on digital asset ETFs.
Prompted by ongoing demand from retail and institutional investors, Vanguard will offer third-party access to crypto ETFs and mutual funds similarly to how it handles gold, as confirmed by a Vanguard spokesperson to Cointelegraph.
According to Bloomberg, only ETFs that comply with regulatory standards will be included, encompassing Bitcoin (BTC), Ether (ETH), XRP (XRP), and Solana (SOL)-related ETFs.
The investment manager informed Cointelegraph that it has excluded memecoins as well as plans to create its own crypto ETFs and mutual funds.
“We cater to millions of investors with diverse needs and risk profiles, aiming to provide a brokerage trading platform that allows our clients to invest in products of their choice,” the Vanguard spokesperson stated.
As of January, Vanguard, with over $11 trillion in global assets under management, ranks just below BlackRock, according to the company’s latest report.
Vanguard had ruled out crypto ETFs due to volatility concerns
Previously, Vanguard opposed offering crypto ETFs on its platform, citing concerns over volatility and the speculative nature of the assets.
Former CEO Tim Buckley expressed strong opposition, stating in a May 2024 video that the company doesn’t “believe it belongs, like a Bitcoin ETF belongs in a long-term portfolio of someone saving for their retirement. It’s a speculative asset.”
Buckley announced his resignation as CEO in February 2024 and completed his retirement at the end of that year.
Salim Ramji, the former head of BlackRock’s global ETF business, who succeeded Buckley as CEO of Vanguard, had also dismissed the idea of offering crypto-related investment products as recently as August.
Related: Vanguard users threaten to close accounts after firm blocks spot Bitcoin ETFs
Change of heart could open the crypto floodgates
Some X users speculate that Vanguard’s change in policy may unleash waves of new investors and boost crypto prices. Crypto analyst and investor Nilesh Rohilla mentioned he would be astonished if Bitcoin doesn’t increase by “5% in this news in the next 24 hrs.”
X user BankXRP noted that it “is another massive signal that traditional finance is fully stepping into digital assets. The wall of money is lining up.”
Meanwhile, Vivek Sen, founder of the Bitcoin public relations firm Bitgrow Lab, also forecasted that there are “trillions incoming.”
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