Bitcoin News Today: Vanguard Embraces Crypto ETFs as Volatility and Demand Collide

Vanguard Group, the world's second-largest asset manager, will begin allowing crypto ETFs and funds on its platform starting Tuesday, marking a significant shift from its long-held skepticism toward digital assets. The move, which opens access to over 50 million brokerage customers, reflects growing institutional and retail demand for regulated crypto investment vehicles despite ongoing volatility in the underlying assets.

The decision comes amid a surge in crypto ETF adoption. XRP spot ETFs alone attracted $644 million in inflows during November 2025, outpacing Bitcoin's performance as investors rotated into regulated products with tighter supply dynamics. While BlackRock's IBIT ETF has seen its assets dip from $100 billion to roughly $70 billion since October, the broader category remains one of the fastest-growing segments in U.S. fund history. This growth trajectory, however, contrasts with persistent underperformance in crypto prices. Solana (SOL), for instance, has fallen below $150 despite its ETFs drawing $369 million in November inflows, with analysts revising price forecasts downward amid headwinds from macroeconomic pressures and market sentiment.

Vanguard's reversal underscores a maturation in both investor preferences and administrative infrastructure for crypto products. "Cryptocurrency ETFs have been tested through volatility, maintaining liquidity and performing as designed," said Andrew Kadjeski, Vanguard's head of brokerage and investments. The firm cited evolved investor behavior and improved operational processes as key factors in its decision, despite its historical caution over crypto's speculative nature. This aligns with broader industry trends: Chainlink's first spot ETF is set to launch this week, and Avail's Nexus Mainnet aims to unify cross-chain liquidity across major ecosystems, signaling a shift toward interconnected onchain infrastructure according to market analysis.

Regulatory developments further contextualize Vanguard's move. Turkmenistan's legalization of crypto in 2026, alongside regulatory advancements in Poland, the UK, and Pakistan, highlights a global push to integrate digital assets into formal financial systems. Meanwhile, U.S. regulators have faced scrutiny over perceived conflicts of interest, as highlighted by a House Democrats' report accusing the Trump administration of favoring family-linked crypto projects. These developments underscore crypto's evolving role in global markets, even as challenges like Bitcoin's recent 4% drop triggered by a $15.4 billion options expiry-reveal lingering volatility.

The implications of Vanguard's decision extend beyond investor access. By legitimizing crypto ETFs, the firm may accelerate institutional adoption, particularly as public entities such as El Salvador and Texas continue accumulating Bitcoin. The Czech National Bank and Abu Dhabi Investment Council have also increased holdings, suggesting a growing appetite for digital assets as strategic reserves according to financial reports. Yet, the market's reliance on ETFs for price stability remains unproven. While XRP's supply constraints and staking yields have fueled optimism, SOL's stagnant price despite ETF inflows raises questions about whether these products can consistently decouple from broader market trends as market data shows.

As Vanguard joins BlackRock and others in embracing crypto ETFs, the industry's next phase will likely hinge on regulatory clarity, macroeconomic conditions, and the ability of digital assets to deliver on their utility promises. For now, the firm's move signals a pivotal moment: traditional finance's resistance to crypto is yielding to a reality where digital assets, for better or worse, are here to stay.