Vanguard Opens Door to Crypto ETF Trading

Vanguard, the world's second-largest asset manager, is poised to allow its clients to begin trading crypto exchange-traded funds (ETFs) and mutual funds on its platform starting Tuesday, reversing its previous stance on digital asset ETFs.

Fueled by persistent retail and institutional demand, Vanguard will permit third-party access to crypto ETFs and mutual funds, mirroring its approach to gold, a Vanguard spokesperson confirmed to Cointelegraph in a statement. Bloomberg reported that only ETFs meeting regulatory standards will be included, such as those related to Bitcoin (BTC), Ether (ETH), XRP (XRP), and Solana (SOL). The investment manager informed Cointelegraph that it has ruled out memecoins and creating its own crypto ETFs and mutual funds.

"We serve millions of investors with diverse needs and risk profiles, and we aim to provide a brokerage trading platform that empowers our brokerage clients to invest in the products they choose," the Vanguard spokesperson stated.

Vanguard trails only BlackRock as an asset manager, boasting over $11 trillion in global assets under management as of January, according to the company's latest report.

Vanguard's Past Concerns over Crypto ETF Volatility

Vanguard previously resisted offering crypto ETFs on its platform, citing concerns about volatility and the speculative nature of the assets.

Former CEO Tim Buckley also voiced strong opposition, stating in a May 2024 video that the company did not "believe it belongs, like a Bitcoin ETF, in a long-term portfolio of someone saving for retirement. It's a speculative asset.""

Buckley announced his resignation as CEO in February 2024 and retired at the end of that year.

Salim Ramji, the former head of BlackRock's global ETF business, who succeeded Buckley as CEO of Vanguard, had also ruled out offering crypto-related investment products as recently as August.

Potential for Crypto Market Floodgates to Open

Some X users speculate that Vanguard's policy change could unlock new investment flows and propel crypto prices. Crypto analyst and investor Nilesh Rohilla suggested he would be surprised if Bitcoin didn't jump "5% on this news in the next 24 hours."

X user BankXRP commented that it "is another massive signal that traditional finance is fully stepping into digital assets. The wall of money is lining up."

Meanwhile, Vivek Sen, founder of Bitcoin public relations firm Bitgrow Lab, predicted "trillions incoming."


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