Vanguard’s Move Confirms Crypto as a Mainstream Investment Category

Vanguard, recognized as the world’s second-largest asset manager with nearly $10 trillion in assets under management, is reportedly evaluating whether to permit its U.S. brokerage clients to invest in third-party cryptocurrency Exchange Traded Funds (ETFs) for the first time. This possible change would represent a significant shift from Vanguard’s traditionally cautious approach to digital assets, as the firm has previously avoided offering direct access to crypto products, including spot

ETFs that debuted in early 2024. Should this policy be adopted, it would further legitimize cryptocurrencies as an asset class for a broad investor audience and heighten competition among financial firms striving to satisfy rising demand for digital asset investments.

This strategic reconsideration is motivated by three main factors: increasing client interest, regulatory advancements, and recent leadership changes. Vanguard’s CEO, Salim Ramji, who previously served as a key executive at

and played a pivotal role in launching the iShares Bitcoin Trust (IBIT), has led the company to reassess its position on crypto. Since joining Vanguard in mid-2024, Ramji has advocated for a careful evaluation of market trends, including the performance of current crypto ETFs and the evolving regulatory landscape. The U.S. Securities and Exchange Commission (SEC) has recently made it easier to approve crypto ETFs by establishing generic listing rules for commodity-based ETFs, lowering entry barriers for asset managers. These regulatory changes have created a more supportive environment for Vanguard to explore crypto offerings while managing operational and reputational concerns.

Vanguard’s plan centers on providing access to third-party crypto ETFs rather than developing its own. This strategy is consistent with the company’s dedication to low-cost, diversified investment options and responds to clients’ desire for regulated exposure to cryptocurrencies. The firm is reportedly focusing on established, highly liquid ETFs, such as those tracking Bitcoin and

, due to their strong inflows and widespread institutional use. For example, BlackRock’s had accumulated over $80 billion in assets under management by September 2025, highlighting the popularity of crypto ETFs. Vanguard’s reluctance to launch its own crypto products reflects its conservative risk management and intent to preserve its reputation in a volatile sector.

This potential policy change could have far-reaching effects on the market. By opening access to digital assets like Bitcoin and Ethereum to its 50 million clients, Vanguard could significantly boost liquidity in these markets. Rivals such as Fidelity, Charles Schwab, and BlackRock, which already provide crypto ETFs, may face increased competition. At the same time, Vanguard’s participation could accelerate the institutional adoption of cryptocurrencies, further establishing them as viable portfolio diversifiers. Experts observe that Vanguard’s approach is in line with broader industry movements, including the mainstream acceptance of crypto investments and greater regulatory certainty under current government policies.

Importantly, Vanguard’s decision will depend on regulatory adherence and effective risk management for clients. The firm must carefully navigate changing SEC and Commodity Futures Trading Commission (CFTC) regulations while ensuring its offerings remain consistent with its long-term investment philosophy. Additionally, it must contend with the high volatility of crypto markets, which contrasts with its usual emphasis on stability. Despite these obstacles, Vanguard’s evolving stance reflects a growing acceptance of digital assets in traditional finance, much like the earlier integration of commercial real estate and private equity.

Introducing crypto ETFs to Vanguard’s platform could mark a turning point for the financial sector. By connecting institutional-grade investment services with the demand for digital assets, Vanguard has the potential to influence investor behavior and reshape market trends. Nevertheless, the company’s careful, incremental approach—likely starting with Bitcoin and Ethereum ETFs—demonstrates its intent to balance innovation with its foundational principles. As the crypto landscape develops, Vanguard’s decisions are expected to impact regulatory progress and competitive tactics throughout the asset management industry.