Vanguard surrendered to market pressure Tuesday, announcing it will allow its 50 million clients to trade third-party crypto ETFs after years of hostility toward the asset class.
The reversal unlocks the platform for spot Bitcoin, Ether, XRP, and Solana products starting immediately. The decision marks the fall of the last major Wall Street holdout, effectively integrating digital assets into the portfolios of a client base controlling $11 trillion.
The Walls Crumble
The pivot comes just six months after Salim Ramji—the former BlackRock executive who oversaw the launch of IBIT—took the helm as CEO. While Vanguard previously blocked customers from buying spot Bitcoin ETFs in January 2024 citing “investment philosophy,” the tune has changed.
Andrew Kadjeski, Vanguard’s head of brokerage, admitted the infrastructure is now ready.
“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity. The administrative processes to service these types of funds have matured.”
The Specifics:
- Allowed: Regulated ETFs for BTC, ETH, XRP, and SOL.
- Banned: Memecoin-linked funds and leveraged products.
- Proprietary Funds: None. Vanguard reiterated it will not launch its own crypto ETF.
The BlackRock Effect
Vanguard’s hand was likely forced by the sheer dominance of BlackRock’s IBIT, which has amassed $70 billion in assets. Ramji’s arrival signaled a shift was inevitable, despite early denials. The firm conceded that denying access to the fastest-growing ETF category in history was no longer tenable for a brokerage competing for retail volume.
Market Reaction
Bitcoin jumped on the news. $86,500 at press time.
The floodgates are open. With Vanguard’s capitulation, every major U.S. brokerage now supports spot crypto exposure, leaving bears with fewer places to hide.
