Vanguard, the world’s second-largest asset manager with over $11 trillion in assets under management, announced on December 1, 2025, that it will begin allowing its brokerage clients to trade select cryptocurrency ETFs and mutual funds starting today, December 3, 2025.
This marks a significant reversal from its long-held skepticism toward digital assets, which it previously viewed as too volatile and speculative for long-term portfolios.
Clients can now access regulated ETFs and mutual funds that primarily hold cryptocurrencies like Bitcoin (BTC), Ether (ETH), XRP, and Solana (SOL). High-risk assets, such as those tied to meme coins, remain restricted.
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This applies to self-directed brokerage and IRA accounts on Vanguard’s U.S. platform, opening the door for its 50 million+ clients to invest in these products without needing to leave the ecosystem. Vanguard cited the ETFs’ performance through recent market volatility and improved operational processes as factors in the decision.
However, the firm has no plans to launch its own crypto products and will only facilitate third-party funds, similar to how it handles commodities like gold. The move comes amid strong demand for crypto ETFs, with spot Bitcoin ETFs alone amassing billions in assets since their 2024 debut.
Analysts expect this could drive tens of billions in new inflows, intensifying competition with rivals like BlackRock and Fidelity. This shift reflects broader mainstream adoption of crypto in traditional finance, potentially boosting liquidity and investor participation.
Vanguard’s policy shift, effective today, is already rippling through markets. Bitcoin surged about 6% in early U.S. trading on December 2, 2025, reflecting immediate optimism, though sentiment remains in “Fear” territory amid recent volatility.
Ethereum, XRP, and Solana also saw gains of 7-8%, but analysts caution this could be a fragile bounce, with potential retests of Bitcoin lows around $80,000 if leverage cascades trigger further liquidations.
Initial ETF inflows may be modest as Vanguard’s conservative clients often in retirement accounts place orders gradually, but even 0.1-0.2% allocation from its $11 trillion AUM could inject $11-22 billion—dwarfing the $25 billion seen in spot Bitcoin ETFs’ first month in 2024.
This move democratizes crypto access for Vanguard’s 50 million+ clients, many previously locked out due to platform restrictions. It channels “sticky” capital—retirement funds and passive allocations—into regulated products, potentially adding tens of billions in sustained demand over months.
If 0.5% of assets shift a conservative estimate for diversification, that’s $55 billion, exceeding BlackRock’s IBIT peak of $100 billion earlier this year. Crypto ETFs, tested through 2024-2025 volatility, now integrate seamlessly into traditional portfolios, akin to gold or commodities.
This could accelerate ETF approvals for other assets and draw sidelined institutions. Enhanced trading volumes reduce spreads and volatility, benefiting spot markets for BTC, ETH, XRP, and SOL. While Bitcoin captures most flows as the “commodity” play, XRP and SOL ETFs could see disproportionate gains from targeted demand, though altcoin season remains elusive.
Competitive and Strategic Shifts in FinanceVanguard’s reversal—driven by client pressure and new CEO Salim Ramji’s BlackRock background—signals TradFi’s capitulation. It pressures holdouts like State Street to follow, intensifying rivalry with BlackRock IBIT at $70-80 billion and Fidelity.
Vanguard won’t launch its own products or support meme coins/high-risk funds, focusing on third-party regulated options to align with its low-cost ethos. This hybrid model bridges crypto’s innovation with TradFi’s stability, potentially eroding direct holdings due to ETF fees of 0.2-0.5% but expanding the pie overall.
Fresh inflows could fuel rallies, but a macro downturn (e.g., U.S. debt expansion or tariff risks) might trigger outsized sell-offs from new, less experienced investors. Aligns with Fed stablecoin rules and QT’s end, but lingering uncertainties persist.
ETF issuers like BlackRock win big on AUM; direct crypto holders may face relative underperformance; traditional bonds could see outflows. This cements crypto’s evolution from speculative fringe to core asset class, unlocking structural inflows that compound over years.
Monitor ETF flow data this week for early signals—expect Bitcoin to lead, with alts following if sentiment flips to “Greed.”