Vanguard Opens Its $11T Platform To Bitcoin And Crypto ETFs
Vanguard Group to Allow Bitcoin and Crypto-Linked Funds on Platform
In a significant shift in policy, Vanguard Group has announced that it will now allow bitcoin and crypto-linked exchange-traded funds and mutual funds to trade on its platform. This move comes after years of barring retail clients from accessing digital-asset products through the firm.
Effective immediately, Vanguard brokerage customers will have the opportunity to trade ETFs and mutual funds that primarily hold select cryptocurrencies, including Bitcoin and other digital assets. This decision, reported by Bloomberg, marks a departure for the world’s second-largest asset manager, which previously cited the volatility and speculative nature of digital assets as reasons for keeping them out of long-term portfolios.
The reversal in policy follows a surge in demand from both retail and institutional investors and is in line with the approval of spot Bitcoin ETFs in January 2024, which injected billions of dollars into regulated crypto products. The BlackRock’s iShares Bitcoin Trust, the largest of these funds, reached nearly $100 billion in assets earlier this year and currently manages around $70 billion despite recent market fluctuations.
A Bitcoin ETF allows investors to gain exposure to Bitcoin without directly purchasing or storing the cryptocurrency. Instead, the fund holds Bitcoin or Bitcoin-related contracts, and investors can buy shares on a stock exchange, with the share price reflecting Bitcoin’s market value.
Institutional Interest in Bitcoin Grows
Vanguard’s decision to allow crypto funds on its platform grants access to more than 50 million brokerage customers overseeing a combined $11 trillion in assets as of September 1, 2025. Andrew Kadjeski, Vanguard’s head of brokerage and investments, emphasized the performance and liquidity of crypto funds during market volatility.
While Vanguard will support most crypto funds that meet regulatory standards, the firm has no plans to launch its own crypto products and will steer clear of meme coin-linked funds. This stance aligns with Vanguard’s commitment to serving a diverse range of investors while catering to evolving preferences.
The popularity of crypto-linked ETFs continues to grow rapidly within the U.S. fund industry, highlighting the increasing investor appetite for regulated exposure to digital assets. BlackRock, for example, has increased its exposure to the IBIT spot Bitcoin ETF internally, with the Strategic Income Opportunities Portfolio now holding 2.39 million shares valued at $155.8 million.
Following the news, Bitcoin experienced a surge in price, trading above $86,500 at the time of publication. The move by Vanguard signals a significant shift in the traditional finance sector’s approach to cryptocurrencies, further legitimizing digital assets as a viable investment option.
