Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The price of Bitcoin (BTC) rose more than 6% on Wednesday, advancing towards the limit of $94,000 during the first hours of the Asian session. This comes just hours after Vanguard lifted its long-standing ban on trading Bitcoin ETFs.
This surge led to one of the strongest intraday moves in the quarter, raising new questions about how much conservative capital can now flow into the cryptocurrency markets.
The price of Bitcoin Surprises as Vanguard changes its stance on Cryptocurrencies
The price of Bitcoin topped $93,000 on Wednesday, adding more than $200 billion to its market value in 36 hours.
Sponsored
Sponsored
The rally started during the US market open on Tuesday. Putting Bitcoin on track for its biggest daily gain since May 2021, the leading cryptocurrency neared $91,000, with a spike in short-paid liquidations.
According to ETF analyst Eric Balchunas, this growth is due to the “vanguard effect”, which occurred the first day after the company lifted its ETF ban.
As BeInCrypto first reported on December 1st, Vanguard has ended its years-long ban on cryptocurrencies. Now, trading of Bitcoin, Ether, XRP, Solana, and other regulated cryptocurrency ETFs and mutual funds is allowed.
This represents a dramatic departure from his previous position. For years, Vanguard executives have argued that cryptocurrencies lack intrinsic value, don’t produce cash flows, and aren’t suitable for long-term retirement strategies.
The company rejected the Bitcoin ETF after it debuted in January 2024 and also limited client purchases of competing funds. However, by January 2024, analysts have predicted that… The company curses its position.
“The stance of Vanguard’s anti-Bitcoin funds is completely on brand and would have made Bogle proud. However, I think they will moderate in the coming years as they build their advisory business; they need access to alternative asset classes.” He said Balchunas in a post of January 13, 2024.
It should be noted that his restrictive position has encouraged many From Vanguard customers To transfer their money to alternative companies. The customer’s reaction was quick and decisive Vanessa Harris, a former Vanguard client, shared her experience.
Sponsored
Sponsored
He said Harris: “I moved my entire retirement account from Vanguard to Fidelity because Vanguard does not support Bitcoin ETFs, and it appears to manipulate the price of Bitcoin by only allowing people to sell GBTC and not buy it.”
The post has since been deleted.
However, the continued demand from customers, coupled with the Bitcoin ETF which is one of the fastest growing product categories in the history of US funds, has forced a reevaluation of the strategy.
Vanguard now says its Bitcoin and cryptocurrency funds have been “tested and performed as designed in many periods of volatility.”
While the company still refuses to launch its own cryptocurrency products or support meme-related cryptocurrency funds, open access alone represents one of the most significant corporate changes in 2025.
Sponsored
Sponsored
Institutional momentum is building at IBIT and Vanguard
Balchunas said that BlackRock’s IBIT Fund Reaching $1 billion in trading volume in the first 30 minutes, Vanguard saves Bitcoin Just before the Christmas holidaysThis is the time when trading begins.
Flow waves were not limited to Belchunas’s observations. The Crypto Rover analyst said that the price action is not a mystery.
“That’s why Bitcoin is pumped … Vanguard just lifted its cancellation of the Bitcoin ETF, and a wave of new institutional investors rushed through BlackRock’s $IBIT ETF. BlackRock’s $IBIT alone generated a trading volume that exceeded $1.8 billion in the first two hours.” books.
On the other hand, market observer Vivek Sen said that the volume of Bitcoin funds in Vanguard exceeded $ 1 billion in the first 30 minutes, Describe The growth is called “crazy”.
These rapid flows suggest that some of the previously blocked demand, including conservative investors focused on retirement who do not have access to Bitcoin ETFs, may have entered the market once the restriction disappeared.
Sponsored
Sponsored
A one-time explosion or the start of a larger trend?
Despite the enthusiasm, analysts remain divided on whether Vanguard’s reversal represents a structural change. When asked if this was a short-term effect after the ban was lifted, or the beginning of a systematic flow of conservative capital into Bitcoin ETFs, Balchunas urged caution.
“i doubt I think a small percentage of people were repressed. It is good to be on the platform and available. You never know when others might assign it. However, you can’t rely on ETF Boomers for everything,” caution.
This observation highlights a key tension, which is that while access to the institutional class is expanding, the long-term behavior of traditional investors remains uncertain.
Bitcoin, Ethereum, XRP and Solana, among the cryptocurrencies featured in Vanguard’s new exchange, are on the rise. BTC was trading at $93,562 at the time of writing, up nearly 10% in the last 24 hours.
If conservative capital continues to flow into ETFs and other spot index funds, the market may enter a new phase of liquidity expansion. However, if this growth is simply a release of pent-up demand, momentum could quickly wane.
Either way, the Vanguard strike ensures that The wall between traditional finance and digital currencies It became much weaker, and investors reacted quickly.
