- Vanguard is the world’s second biggest asset manager, rivaling BlackRock.
- The firm has resisted joining the cryptocurrency rush until now.
Vanguard, the $11 trillion asset manager famous for resisting the cryptocurrency trend, is reversing course and will allow spot crypto exchange-traded funds to trade on its platform starting Tuesday.
The move is seen as a major concession to investor demand.
Vanguard serves clients with “diverse needs and risk profiles” and aims to give them “the ability to invest in products they choose,” Andrew Kadjeski, Vanguard’s head of brokerage and investments, told Bloomberg.
Vanguard clients will be able to buy and sell ETFs and mutual funds holding Bitcoin, Ethereum, XRP and Solana. Kadjeski said that it still has “no plans” to launch its own crypto products.
Still the change opens the door for more than 50 million brokerage clients to access regulated exposure to digital assets.
The pivot by the world’s second largest investment manager demonstrates that even the industry’s most conservative can no longer resist one of the fastest-growing product categories in Wall Street history.
Vanguard joins fellow giants BlackRock, Fidelity, and Franklin Templeton, which have all jumped on the crypto ETF bandwagon over the past two years.
“Vanguard finally caves,” Nate Geraci, co-founder of the ETF Institute, said on X.
ETF rush
Crypto ETF trading has become an accelerating revenue engine for Wall Street.
Cristiano Castro, BlackRock’s director of business development in Brazil, said that crypto ETF trading has been one of the firm’s largest sources of revenue.
Despite a brutal November that saw $3.5 billion in selloffs, BlackRock’s flagship iShares Bitcoin Trust ETF still has $66 billion in Bitcoin, DefiLlama data shows. Though that figure is down from nearly $100 billion from the assets under management it had at its peak.
Meanwhile, altcoin ETFs such as those linked to XRP, the fourth largest crypto, have fared better in the market downturn.
XRP ETFs have attracted $756 million in investment since launching on November 13, with two consecutive green weeks, according to SoSoValue. Solana ETFs are not far behind, enjoying $605 million in inflows since their October launch.
Bloomberg ETF analyst Eric Balchunas said on X he expects over 100 new crypto-linked products to launch over the next six months.
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.
