Vanguard Ends Crypto Resistance, Opens Platform to Bitcoin and Ethereum ETFs

Subtitle: In a landmark policy reversal, the $11 trillion asset manager will now offer its 50 million brokerage clients access to regulated crypto ETFs, marking a seismic shift in institutional acceptance.

Introduction: A Giant Awakens to Digital Assets

In a move that signals a profound evolution in the traditional financial landscape, Vanguard—the world’s second-largest asset manager with roughly $11 trillion in assets—has officially ended its longstanding resistance to cryptocurrency. According to a report by Bloomberg, beginning Tuesday, the firm will open its brokerage platform to trading for exchange-traded funds (ETFs) and mutual funds that hold Bitcoin, Ethereum, XRP, and Solana. This strategic pivot abandons a years-long stance that deliberately kept digital-asset products off its shelves, effectively putting crypto exposure on the same footing as other non-core assets it already accommodates, such as gold.

The decision grants Vanguard’s more than 50 million brokerage customers direct access to regulated crypto investment wrappers, dramatically expanding the potential investor base for these assets. This change follows months of internal review and underscores persistent client demand, even amid a broader market pullback. For years, Vanguard was a notable holdout during the rapid growth of spot Bitcoin ETFs in the United States. Its reversal now places it firmly within a mainstream financial trend it once avoided, closing a significant gap in accessibility for millions of investors.

The Policy Reversal: From Sidelines to Mainstream Access

Vanguard’s historical position on cryptocurrency was one of deliberate caution and exclusion. While competitors like BlackRock and Fidelity raced to file for and launch spot Bitcoin ETFs following regulatory approval from the U.S. Securities and Exchange Commission (SEC) in early 2024, Vanguard maintained its restriction. The firm’s platform explicitly blocked customers from purchasing the new wave of spot Bitcoin ETFs, a policy that aligned with its public stance of focusing on “core” asset classes like stocks and bonds while viewing crypto as speculative.

This new policy represents a fundamental operational shift. By allowing trading in funds that hold Bitcoin, Ethereum, XRP, and Solana, Vanguard is not merely dipping a toe in the water but is integrating these assets into its existing framework for “non-core” investments. This category already includes commodities like gold, allowing financial advisors and self-directed investors within the Vanguard ecosystem to allocate to crypto within a familiar portfolio construction model. The move is a direct response to sustained client interest, demonstrating that demand has remained robust enough to prompt a top-down review and subsequent reversal from one of the most conservative giants in asset management.

The CEO Catalyst: Leadership Change at the Helm

A critical factor behind this strategic shift appears to be a change in leadership. In July 2024, Salim Ramji took over as Vanguard’s Chief Executive Officer. Ramji’s background stands in stark contrast to his predecessor, Tim Buckley, and the company’s traditional culture. Ramji is a veteran of iShares, the ETF arm of Vanguard’s largest competitor, BlackRock. In his prior role as BlackRock’s Global Head of iShares and Index Investments, Ramji was intimately involved in the filing and logistical rollout of the iShares Bitcoin Trust (IBIT).

Perhaps more significantly, Ramji is a public supporter of both Bitcoin and blockchain technology—a perspective not previously associated with Vanguard’s top brass. Bloomberg ETF analyst Eric Balchunas noted that Ramji’s appointment marked the “first time ever” that Vanguard had hired externally for its top job, tweeting earlier this year that he was “semi-shocked” by the move. This external hiring from a direct competitor known for its proactive crypto strategy clearly signaled a potential change in direction. Ramji’s experience and personal conviction likely provided the necessary internal catalyst to reevaluate and ultimately overturn the firm’s restrictive crypto policy.

The Market Context: Catching Up to a $125 Billion ETF Wave

Vanguard’s reversal comes after it spent nearly two years on the sidelines of one of the most successful ETF launches in history. The eleven spot Bitcoin ETFs that debuted in January 2024 experienced massive inflows, lifting their combined assets from $25 billion within the first month to approximately $125 billion by late 2025/early 2026, according to the provided data. Vanguard’s refusal to offer these products meant it missed out on facilitating this wave of investment and the associated revenue from brokerage activity.

The scale of the market Vanguard is now entering is substantial. Data from SoSovalue shows that BlackRock’s iShares Bitcoin Trust (IBIT), the largest of these ETFs, alone holds about $70 billion in assets (down from a peak near $99.5 billion). While crypto remains a small fraction of BlackRock’s total $13.5 trillion in assets under management (AUM), its success demonstrated undeniable institutional and retail demand. By opening its platform, Vanguard is not just providing access; it is validating the entire asset class for its vast client base of long-term, often conservative investors. It also positions Vanguard to capture future flows into not only Bitcoin ETFs but also products tied to Ethereum, XRP, and Solana.

Product Scope: Beyond Bitcoin to Ethereum, XRP, and Solana

While much attention focuses on Bitcoin ETFs, Vanguard’s new policy has a broader scope. The firm will permit trading in funds holding four major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), XRP (XRP), and Solana (SOL). This indicates an acceptance of a select group of digital assets beyond just the original cryptocurrency.

• Bitcoin and Ethereum are widely regarded as the two leading crypto assets by market capitalization and are often seen as relatively established within the institutional context.
• The inclusion of XRP and Solana is particularly notable. XRP has been at the center of a high-profile legal battle between Ripple Labs and the SEC, while Solana is known as a high-performance blockchain for decentralized applications. Their inclusion suggests Vanguard’s due diligence extended to assets with different risk profiles and regulatory backgrounds.

This multi-asset approach allows Vanguard clients to gain diversified crypto exposure through regulated funds without needing to directly custody tokens or use external cryptocurrency exchanges. It aligns crypto with other alternative assets in their system, providing a structured path for allocation.

Comparative Scale: Vanguard vs. BlackRock in the Crypto Arena

The entry of Vanguard creates a fascinating dynamic between the world’s two largest asset managers.

• BlackRock (≈$13.5 trillion AUM) acted as a first-mover by launching IBIT and has since become the dominant force in the spot Bitcoin ETF market.
• Vanguard (≈$11 trillion AUM) is now entering as a powerful distribution channel rather than an ETF issuer.

Their roles are complementary yet competitive. BlackRock manufactures leading crypto ETF products; Vanguard now provides one of the world’s largest retail and advisor platforms for distributing those products and others like them. While BlackRock built significant AUM in its crypto products without Vanguard’s distribution, Vanguard’s move opens up a massive new conduit for inflows that could benefit all approved ETF issuers. It transforms the competitive landscape from one where issuers compete for flows on various platforms to one where they may also seek to ensure their funds are available on what is now one of the most significant newly opened distribution networks.

Strategic Conclusion: Validation and Accessibility Define a New Phase

Vanguard’s decision to open its platform to cryptocurrency ETFs is more than a policy update; it is a landmark event that signifies deep maturation within the digital asset ecosystem. It represents validation from one of traditional finance’s most stalwart institutions, effectively signaling to millions of investors that exposure to cryptocurrencies through regulated vehicles is a legitimate component of a diversified portfolio.

The immediate impact is vastly increased accessibility. Over 50 million investors who trust Vanguard with their capital now have a sanctioned path to crypto investment without leaving their primary brokerage relationship. This could lead to significant long-term inflows into existing ETFs as advisors rebalance portfolios and retail investors explore new allocations.

For readers and market participants, key developments to watch next include:

1. Flow Data: Monitoring weekly inflow data into spot Bitcoin and other crypto ETFs for any measurable increase attributable to Vanguard’s new access.
2. Product Expansion: Whether Vanguard expands its list of supported crypto assets or funds over time.
3. Competitive Response: How other large brokerages or asset managers adjust their own crypto policies in response.
4. Regulatory Developments: Continued clarity from regulators like the SEC, particularly concerning Ethereum-based products.

Vanguard’s move closes a chapter of institutional resistance and opens one focused on integration and accessibility. By aligning cryptocurrencies with other non-core assets like gold within its platform, Vanguard has not just adopted a new product line—it has helped redefine where digital assets belong in the modern financial hierarchy