Vanguard Considers Brokerage Access to Crypto ETFs

Vanguard is weighing whether to allow its brokerage clients to buy and sell cryptocurrency exchange-traded funds, according to Crypto in America, marking a possible shift for the $9 trillion asset manager.

The firm has historically resisted exposure to digital assets. When the first U.S. spot bitcoin ETFs launched in January 2024, Vanguard refused to offer them, calling the products too volatile and unsuitable for the long-term investment strategies it promotes. New CEO Salim Ramji, who took the helm earlier this year after overseeing iShares at BlackRock, initially echoed that stance, signaling no change in the company's position.

But demand from clients has grown. According to a person familiar with the discussions, Vanguard is now "being very methodical in their approach" as it studies whether to open access to bitcoin and ether ETFs already managed by rivals such as BlackRock and Fidelity. Vanguard is not expected to create its own products but could make third-party ETFs available through its brokerage platform.

The regulatory environment has shifted in ways that may support the move. After the SEC approved spot bitcoin ETFs last year, regulators under the Trump administration streamlined listing standards for crypto ETFs, reducing hurdles for issuers and brokers. The result has been rapid asset growth: BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund are among those attracting billions of dollars from investors ranging from hedge funds to retail traders.

Analysts say Vanguard's eventual participation could significantly expand access. With over 50 million clients, the firm controls one of the largest retail distribution channels in the industry. Bloomberg ETF analyst Eric Balchunas described the potential reversal as a "smart" move on social media, noting that crypto ETFs have already proven "hugely popular."

Still, uncertainty remains. Vanguard has not disclosed a timeline for a decision, and internal opposition to crypto is believed to persist. For now, the deliberations highlight the ongoing tension between the firm's traditionalist investment philosophy and the growing role of digital assets in mainstream portfolios.