Bitcoin News Today: Vanguard's Crypto Pivot: Mature ETFs and Investor Demand Normalize Digital Assets

Vanguard Group, the world's second-largest asset manager with $11 trillion in assets under management, has reversed its long-standing skepticism toward cryptocurrencies by opening its brokerage platform to regulated crypto ETFs and mutual funds, according to Bloomberg. The move, effective Tuesday, grants access to its 50 million clients to invest in products tied to Bitcoin, Ether, XRP, and Solana. This shift marks a significant turning point for the firm, which had previously dismissed digital assets as "too volatile and speculative" for serious portfolios.

The decision reflects growing institutional and retail demand for crypto exposure. Since their January 2024 debut, U.S. spot Bitcoin ETFs have amassed $120 billion in assets under management, with BlackRock's IBIT alone surging to $70.7 billion in assets. Vanguard's head of brokerage and investments, Andrew Kadjeski, cited the "maturity" of crypto ETF infrastructure and evolving investor preferences as key drivers of the change. The firm will support most crypto funds meeting regulatory standards, excluding those linked to memecoins or lacking SEC approval, while reaffirming no immediate plans to launch its own crypto products according to Bloomberg.

The broader market context underscores the urgency of Vanguard's pivot. BlackRock, a longtime crypto skeptic turned leader, now generates more revenue from its Bitcoin ETFs than from many of its traditional equity and fixed-income funds. Its IBIT ETF, launched in January 2024, became the fastest to reach $70 billion in assets, now holding over 3% of Bitcoin's total supply. Meanwhile, ether ETFs have attracted nearly $20 billion in inflows, reflecting a broader trend of institutional adoption according to Coinpedia.

Vanguard's entry into the crypto ETF space also highlights the sector's resilience despite recent volatility. Despite a $1 trillion drawdown in crypto market value since October 2025, regulated crypto products continue to attract capital. For example, XRP ETFs saw $644 million in November inflows, driven by institutional rotation into regulated products. This momentum suggests that digital assets are increasingly viewed as a core asset class rather than a speculative niche.

The shift by Vanguard and BlackRock signals a broader normalization of crypto in traditional finance. As Kadjeski noted, the administrative processes for servicing crypto ETFs have evolved to meet investor demand, and the firm's clients now have access to a diversified range of digital-asset products. With crypto ETFs continuing to outperform many traditional alternatives in terms of growth and liquidity, the line between traditional and digital finance appears to be blurring rapidly.