Vanguard Group is opening its doors to cryptocurrency funds, marking one of the most dramatic policy reversals yet by a traditional asset manager.
The world’s second-largest asset manager will, starting Tuesday, allow exchange-traded funds and mutual funds that primarily hold select cryptocurrencies to be traded on its brokerage platform.
The move ends years of resistance at Vanguard, which had long argued that digital assets were too volatile and speculative for long-term investors. Under the new policy, funds with exposure to Bitcoin, Ether, XRP, and Solana will be eligible for trading, so long as they meet the firm’s regulatory and listing standards.
The shift comes despite a bruising period for crypto markets, which have shed about $1 trillion in value since early October.
Yet demand from both retail and institutional investors has remained resilient. Since their launch in January 2024, spot Bitcoin ETFs have gathered tens of billions of dollars; BlackRock’s flagship IBIT ETF alone still holds about $70 billion in assets, even after recent price declines.
“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” said Andrew Kadjeski, head of brokerage and investments at Vanguard. He added that the operational infrastructure to service such products has matured, while investor preferences have clearly shifted.
Vanguard’s change of heart follows the arrival of Chief Executive Officer Salim Ramji, a former BlackRock executive and blockchain advocate who took over last year. The company says it will treat most crypto funds similarly to other non-core asset classes, such as gold, while stopping short of launching its own digital-asset products.
The firm also drew a line at riskier corners of the market. Funds tied to memecoins, as described by the Securities and Exchange Commission, will not be permitted. “We serve millions of investors with diverse needs and risk profiles,” Kadjeski said. “Our role is to provide a platform that lets them choose appropriate products, not to chase every speculative trend.”