Vanguard's Crypto ETF Move Signals Mainstream Embrace of Digital Assets

‘Regrets over delay’ – Vanguard to offer crypto ETFs to 50M investors^[1] Vanguard Group, the world’s largest asset manager with $10 trillion in assets under management, has announced plans to offer its 50 million investors access to third-party crypto ETFs, marking a significant shift in its long-standing stance on digital assets. The firm, which had previously distanced itself from the crypto market, will enable clients to invest in existing crypto ETFs through its brokerage platform, though it will not launch its own products. This decision follows growing client demand and evolving regulatory clarity, particularly after the approval of Bitcoin and Ethereum ETFs in 2024.

$11 trillion asset manager gives in to crypto after long resistance^[2] The move aligns with Vanguard’s new CEO, Salim Ramji, who previously spearheaded BlackRock’s Bitcoin ETF (IBIT), now valued at over $85 billion in assets. Ramji’s leadership is seen as a catalyst for Vanguard’s pivot, as he has consistently emphasized adapting to market trends. “It’s smart of them,” said Bloomberg ETF analyst Eric Balchunas, noting that Vanguard’s entry into the crypto space would likely boost ETF adoption among its retail investor base.

Nate Geraci Predicts 50 New Crypto ETFs…^[3] Vanguard’s decision reflects broader industry momentum. Competitors like BlackRock and Fidelity have already established significant footholds in the crypto ETF market, with BlackRock’s crypto holdings reaching $100 billion as of September 2025. Vanguard’s late entry has drawn mixed reactions. While some investors welcome the expansion of investment options, others criticize the firm for missing opportunities to innovate in the space. A source familiar with the plans stated Vanguard “regrets” not acting sooner, acknowledging the firm’s “hesitation” amid rapid crypto adoption.

The firm’s approach focuses on facilitating access to third-party ETFs, such as iShares Bitcoin ETF (IBIT) and Fidelity’s offerings, rather than developing proprietary products. This strategy prioritizes client demand and regulatory compliance, as Vanguard avoids the complexities of launching its own crypto ETFs. Analysts predict this could catalyze further inflows into the sector, particularly as institutional investors increasingly allocate to digital assets.

Nate Geraci, president of the ETF Store, forecasts Vanguard’s move as part of a broader trend, with 50 new crypto-related ETFs expected to launch in 2025. He highlighted the potential for products like Solana and XRP ETFs, though regulatory hurdles may favor Litecoin or Hedera due to their commodity classifications. Geraci also anticipates Vanguard allowing in-kind redemption and creation mechanisms for Bitcoin and Ethereum ETFs, enhancing liquidity and efficiency.

The decision underscores the maturation of the crypto market, with ETFs now serving as mainstream investment vehicles. Vanguard’s 50 million investors, many of whom are traditional equity-focused, could drive significant capital into crypto ETFs, amplifying their impact on market dynamics. As the firm’s shares in MicroStrategy—a major Bitcoin holder—suggest indirect exposure to digital assets, this move could signal a strategic alignment with long-term crypto adoption.

While the details of Vanguard’s implementation remain pending, the firm’s entry into the crypto space is widely viewed as a positive development for the sector. As BlackRock and Fidelity continue to dominate, Vanguard’s scale and reputation may accelerate the normalization of crypto as an asset class, further integrating it into diversified investment portfolios.