Bitcoin News Today: Vanguard's Crypto Pivot: Mainstream Embrace Driven by Investor Demand

Vanguard Group, the world's second-largest asset manager, will begin allowing trading of Bitcoin and select cryptocurrency ETFs and mutual funds on its platform starting December 2, 2025, marking a significant shift for the firm long resistant to digital assets. The move, confirmed by Bloomberg ETF analyst Eric Balchunas and detailed in multiple reports, enables more than 50 million brokerage customers to access regulated crypto-linked products, including those tracking Bitcoin, Ethereum, XRP, and Solana. The decision follows persistent client demand and evolving market dynamics, even as crypto markets have faced a $1 trillion drawdown since October.

For years, Vanguard maintained a hardline stance against crypto, dismissing it as speculative and ill-suited for long-term portfolios. Executives previously argued that digital assets lacked intrinsic value and cash flows, aligning with the firm's conservative investment philosophy. However, the rise of spot Bitcoin ETFs-launched in January 2024 and now managing over $119 billion in assets-forced a reevaluation. BlackRock's iShares Bitcoin Trust (IBIT), for instance, has attracted $70 billion despite recent price declines, demonstrating institutional and retail confidence in crypto wrappers.

Vanguard's reversal reflects broader industry trends. The firm's new CEO, Salim Ramji-a former BlackRock executive and blockchain advocate-has championed the inclusion of digital assets since his appointment in 2024. Ramji's tenure has already seen Vanguard adopt a more flexible approach to crypto, contrasting with the views of his predecessor, Tim Buckley. The firm now treats crypto ETFs similarly to gold, another non-core asset class, emphasizing their role as "regulated wrappers" rather than direct exposure to volatile markets.

Andrew Kadjeski, Vanguard's head of brokerage and investments, highlighted that crypto ETFs and mutual funds have "performed as designed" through volatile periods, maintaining liquidity and operational maturity. This validation is critical, as Vanguard's platform manages over $11 trillion in assets, giving the firm's endorsement added weight in mainstreaming crypto. The firm will not create its own crypto products or include memecoin-linked funds but aims to meet investor demand by offering access to third-party options that meet regulatory standards according to Bloomberg.

The timing of the shift is notable. It follows months of internal deliberation and a market correction that has erased nearly $1 trillion in crypto valuations. Despite these challenges, crypto ETFs remain one of the fastest-growing segments in U.S. fund history. Analysts predict over 100 new crypto ETFs could launch in the next six months, with products tracking XRP, Solana, and Dogecoin already available.

Vanguard's decision underscores the accelerating convergence of traditional finance and digital assets. By aligning with client preferences and market realities, the firm is positioning itself to capture a share of the growing crypto investment landscape while mitigating risks associated with direct exposure to volatile markets.