Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Vanguard, the $8 trillion US asset manager, will allow traditional cryptocurrency-oriented ETFs and mutual funds to trade on its platform starting December 2, ending its long refusal to support digital asset products.
This decision represents a major change for the world’s second largest asset manager and opens up regulated access to cryptocurrencies for more than 50 million brokerage clients.
Sponsored
Sponsored
Vanguard drops its anti-cryptocurrency policy
The company confirmed Support him For products containing Bitcoin, Ether, XRP, Solana, and other regulated cryptocurrencies.
However, it will continue to ban meme-related crypto funds and will not launch its digital asset products.
Vanguard has spent years fighting exposure to cryptocurrencies And I repeated Bitcoin and other digital assets have repeatedly been described as speculative investments.
The company refused Spot Bitcoin ETFs After its debut in January 2024, it also limited the acquisition of clients of competing funds.
For years, Vanguard executives have argued that cryptocurrencies lack intrinsic value, don’t produce cash flows, and don’t fit into long-term retirement strategies.
But continued demand has pressured the company to rethink its position. Bitcoin ETFs have become one of the fastest growing product categories in US fund history, and… BlackRock IBIT Funds Only, there are tens of billions in assets.
Sponsored
Sponsored
This dimension, combined with constantly changing investor preferences, weakened the justification for exclusion.
Changes in leadership helped pave the way
This policy change came after more than a year of internal debate. The former CEO of Vanguard Tim Buckley was considered the main opponent of the adoption of cryptocurrency.
His departure and appointment Hello Ramjithe former CEO of BlackRock, who has experience in blockchain initiatives, indicated a potential change.
Sponsored
Sponsored
Ramji did not push the company towards the issuance of its cryptocurrency funds, but he supported giving customers access to regulated products.
The move is in line with Vanguard’s exposure to other non-core assets, such as gold ETFs.
Market conditions do not prevent movement
This reversal occurs during… Deep decline of digital currencies Since the beginning of October, there have been significant outflows from ETFs. The market value of Bitcoin fell sharply, and leveraged positions suffered huge losses.
Vanguard said digital asset ETFs continue to perform well and maintain liquidity during volatile periods.
The company noted that its operational processes for servicing digital currency products have matured by 2024. It added that its clients increasingly expect access to a wide range of asset classes via a single brokerage platform.
Sponsored
Sponsored
What the decision means for investors
Starting Tuesday, Vanguard clients can buy and sell most cryptocurrency ETFs and mutual funds focused on cryptocurrencies. The company will continue to inspect products for compliance and exclude any means associated with counterfeit currencies identified by the SEC.
Vanguard emphasized that it has no plans to build its own cryptocurrency offering.
Instead, it aims to accommodate different risk profiles, while maintaining its conservative product philosophy.
This move is likely to strengthen the legitimacy of digital assets in traditional finance. It also represents a symbolic turning point for a company that has long been considered the staunchest supporter of cryptocurrencies.
