Vanguard Embraces Crypto ETFs After Years of Resistance: What Does it Mean for Users?

Vanguard Group, a major asset manager with about $8 trillion in Assets Under Management (AUM) and more than 50 million clients, has started allowing its brokerage customers to trade certain cryptocurrency exchange-traded funds and mutual funds as of December 2, 2025. 

This policy change, announced on December 1, ends the firm's previous restrictions on such products and provides users with access to regulated exposure to assets like Bitcoin and Ethereum through familiar investment vehicles. 

For investors, this means easier integration of digital assets into portfolios without direct custody. However, it comes amid ongoing market volatility, including a recent significant drop in the overall value of cryptocurrencies since early October 2025. As of writing, the total crypto marketcap is at 2.94 trillion, a significant drop from its all-time high of 4.20 trillion. 

What Was Vanguard’s Stance on Cryptocurrencies? 

Vanguard has long maintained a cautious approach to cryptocurrencies, aligning with the investment principles set by its founder, John Bogle, who emphasized low-cost, diversified strategies based on historical data. 

In January 2024, the U.S. Securities and Exchange Commission approved the first spot Bitcoin ETFs, but Vanguard chose not to offer them on its platform. The firm also removed access to existing Bitcoin futures ETFs, stating that these assets were too volatile and speculative for its client base. This decision stood in contrast to actions by competitors such as BlackRock and Fidelity, which quickly launched and promoted spot Bitcoin products.

The resistance persisted through 2024 and into 2025, even as spot Ethereum ETFs received approval in mid-2024. Vanguard's policy barred clients from trading these instruments, leading to criticism from some users who sought more options. The firm's executives repeatedly highlighted concerns over liquidity risks and alignment with long-term investing goals. 

Details of the Policy Change

The new policy permits trading of ETFs and mutual funds that primarily hold select cryptocurrencies, including Bitcoin, Ethereum, XRP, and Solana. These products must meet Vanguard's regulatory compliance and liquidity criteria, in line with how the firm handles other non-core assets, such as gold ETFs. However, funds tied to memecoins, such as those based on Dogecoin or Pepe, remain restricted due to their higher levels of speculation.

Vanguard has made clear it has no immediate plans to launch its own cryptocurrency ETFs or mutual funds. Andrew Kadjeski, the head of brokerage and investments at Vanguard, noted in a statement that these products have demonstrated resilience: "Crypto ETFs and mutual funds have proven resilient during periods of market volatility, performing as expected and maintaining liquidity." This assessment follows a significant market event in October 2025, when cryptocurrency ETFs recorded a weekly inflow of $5.95 billion. 

Spot Bitcoin ETFs have accumulated approximately $125 billion in assets under management by late 2025, with BlackRock's iShares Bitcoin Trust holding around $70 billion after adjusting for recent fluctuations. Ethereum spot ETFs have reached nearly $18 billion in assets under management during the same period. 

These figures underscore the growing institutional interest, with entities like Goldman Sachs reporting $1.4 billion in Bitcoin ETF holdings and Harvard's endowment allocating $443 million to similar products.

What Prompted the Shift in Policy?

The policy reversal coincides with a leadership change at Vanguard. In July 2024, Salim Ramji took over as chief executive officer, marking the first time the firm appointed an external candidate to the role. Ramji previously led BlackRock's iShares division, overseeing the launch of the iShares Bitcoin Trust, among other ETFs. His background in blockchain and ETF management has been cited as a factor in Vanguard's reevaluation of cryptocurrency access.

Under Tim Buckley’s leadership, Vanguard reinforced its anti-cryptocurrency position, emphasizing evidence-based investing over speculative trends. Ramji's approach appears to prioritize responding to client demand while upholding the firm's core standards. This internal shift, combined with external regulatory developments, such as relaxed SEC oversight for certain crypto ETFs, facilitated the December announcement.

How Does it Affect Vanguard Clients?

For Vanguard's brokerage customers, the change provides a regulated pathway to cryptocurrency exposure without the need for direct wallet management or exchange accounts. Users can now trade spot Bitcoin ETFs, such as BlackRock's iShares Bitcoin Trust, and Ethereum-based funds, integrating them into existing portfolios alongside traditional stocks and bonds. This could appeal to retail investors seeking diversification, particularly as XRP and Solana ETFs gain traction for their potential in payment systems and smart contract applications.

Early reactions on platforms like X indicate user interest, especially in XRP ETFs, which some describe as creating new retail entry points for these tokens. However, clients should note that Vanguard treats these as non-core investments, subject to the same transaction rules as other ETFs. 

Overall, Vanguard's decision could influence traditional finance sectors. With its client base, this access might channel additional billions into the market, enhancing liquidity and price stability for assets like Bitcoin and Ethereum. If ETF performance remains strong over the next six to 12 months and regulators, such as the SEC and CFTC, provide clearer guidance, Vanguard might revisit its stance on developing proprietary cryptocurrency funds. For now, the policy focuses on third-party offerings that have proven liquidity during volatile periods.

Final Thoughts

Vanguard's allowance of cryptocurrency ETFs represents a measured adjustment to its investment framework, providing clients with access to flagship crypto products while excluding more speculative options, such as memecoins. 

This shift, driven by new leadership and supported by demonstrated ETF liquidity, addresses user demand amid a market that has seen $125 billion in spot Bitcoin assets. Investors are advised to evaluate these options against personal risk tolerances, given persistent volatility such as the $1 trillion drawdown in late 2025. 

Sources:

• Bloomberg Report - Vanguard Will Now Allow Crypto ETFs on Its Platform
• Vanguard - Company Information and Insights
• Yahoo Finance - Vanguard Reverses Year-long Crypto ban
• Vanguard News Release - Salim Ramji's appointment as CEO