The world’s second-largest asset manager reverses course and enables trading of digital-asset products on its platform.
Vanguard has announced that it will allow trading of funds linked to digital assets such as bitcoin and ether on its platform. The news, reported by Bloomberg, marks a major shift for the world’s second-largest asset manager.
The company had previously maintained a cautious stance toward products tied to digital assets, excluding from its offering even the spot bitcoin ETFs launched by giants like BlackRock and Fidelity. In August 2024, CEO Salim Ramji publicly stated that the firm had no plans to offer spot ETFs on digital assets to its clients.
According to Bloomberg, Vanguard’s decision to open up to crypto funds was driven by strong demand from both retail and institutional investors. Starting December 2, ETFs and mutual funds that primarily hold digital assets will be available for trading on the financial giant’s platform.
“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” said Andrew Kadjeski, head of brokerage and investments at Vanguard. “The administrative processes to service these types of funds have matured, and investor preferences continue to evolve.”
Vanguard’s choice is another example of the growing convergence between traditional finance and digital assets. According to Bloomberg, the company’s platform serves more than 50 million clients who manage over $11 trillion.
Spot cryptocurrency ETFs have gradually spread across the United States: first with the SEC’s approval of spot bitcoin ETFs in January 2024, followed six months later by spot ether ETFs.
Eric Balchunas, senior ETF analyst at Bloomberg, expects more than 100 new crypto ETFs to launch in the next six months. By October, more than 150 applications had already been filed for exchange-traded products based on cryptocurrencies, tracking 35 different digital assets.
