Vanguard, the world’s second-largest asset manager with over $10 trillion in assets under management AUM, is reportedly preparing to reverse its long-standing resistance to cryptocurrency products.
According to recent reports, the firm is in exploratory talks to allow its U.S. brokerage clients—numbering around 50 million—to access select third-party crypto exchange-traded funds (ETFs). This comes after years of blocking such investments, citing crypto’s volatility and lack of long-term value as an asset class.
In January 2024, when spot Bitcoin ETFs were first approved by the SEC, Vanguard explicitly prohibited trading them on its platform. The firm viewed crypto as speculative rather than a viable investment for generating stable, long-term returns.
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Rivals like BlackRock whose Bitcoin ETF has amassed over $80 billion in assets, Fidelity, and Charles Schwab have embraced crypto ETFs, driving massive inflows—totaling around $70 billion industry-wide since launch. Even JPMorgan and Morgan Stanley have begun offering Bitcoin trading and ETF access to clients.
What’s Changing Now?
Vanguard has initiated “methodical” discussions with external partners but has no plans to launch its own crypto products. The focus is solely on enabling access to existing third-party ETFs, such as those tracking Bitcoin or Ethereum.
The appointment of CEO Salim Ramji in 2024—formerly the head of BlackRock’s ETF business, including its Bitcoin ETF—appears to be a catalyst. In July 2025, Ramji reiterated no interest in proprietary crypto ETFs but left the door open for third-party access.
Recent SEC actions, including a new generic listing standard that slashes ETF approval times from 240 to 75 days and broadens eligibility for major cryptos, have eased barriers. This aligns with a more crypto-friendly environment under evolving U.S. regulations.
If implemented, this could unlock enormous capital flows into crypto: A mere 1% allocation from Vanguard’s AUM would equate to $100 billion—dwarfing many existing ETF categories and accelerating mainstream adoption.
With Vanguard serving one in six U.S. households, this move could integrate crypto into retirement accounts and passive portfolios, shifting perceptions from “speculation” to “core asset class.” Analysts predict a fresh boom, especially after last week’s market dip, offering attractive entry points.
Vanguard manages over $10 trillion in assets. Even a conservative 1% allocation to crypto ETFs could unleash $100 billion in new capital, surpassing the $70 billion total inflows into crypto ETFs since their inception in 2024.
This influx could drive significant price appreciation for major cryptocurrencies like Bitcoin and Ethereum, potentially sparking a new bull run, especially following recent market dips that have created attractive entry points.
With Vanguard’s vast retail client base one in six U.S. households crypto could transition from a niche asset to a staple in diversified portfolios, including retirement accounts like IRAs and 401(k)s.
Vanguard’s historical skepticism framed crypto as speculative. Allowing ETF access signals a softening stance, lending institutional credibility and encouraging conservative investors to consider crypto as a legitimate asset class.
Retail investors may increasingly view crypto ETFs as a low-effort way to gain exposure without navigating crypto exchanges, aligning with Vanguard’s passive, long-term investment philosophy.
Vanguard’s move levels the playing field with competitors like BlackRock, Fidelity, and Charles Schwab, who have already embraced crypto ETFs. This could stem client outflows to platforms offering broader crypto access.
While Vanguard is unlikely to launch proprietary crypto products, competitors may accelerate their own offerings like new ETF structures or direct crypto trading to maintain an edge.
Other conservative holdouts may follow Vanguard’s lead, accelerating the normalization of crypto in traditional finance and potentially leading to new products like crypto-focused index funds.
Vanguard’s 50 million clients gain flexibility to diversify into crypto without leaving the platform, potentially increasing client retention and satisfaction. Crypto’s high volatility could expose Vanguard’s risk-averse clients to significant losses, potentially leading to scrutiny if clients over-allocate without proper education.
Vanguard’s focus on third-party ETFs rather than proprietary products limits its exposure but also caps its ability to shape the crypto market directly. Without official confirmation or a clear timeline, delays or restrictive conditions.
If crypto markets crash, Vanguard’s cautious client base may blame the firm for enabling access, potentially straining its reputation for prudent investing. Vanguard’s pivot could catalyze a seismic shift in crypto adoption, driving billions in new capital, legitimizing the asset class, and pressuring competitors to keep pace.
However, its cautious approach and crypto’s volatility introduce risks that could temper enthusiasm. Investors should monitor for official announcements and weigh ETF access against direct crypto ownership on platforms like Coinbase or Binance, depending on their risk tolerance and goals.