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On December 2, 2025, Vanguard, the second-largest asset manager in the world with more than $11 trillion in assets under management, said that it would soon let its more than 50 million clients trade third-party cryptocurrency exchange-traded funds (ETFs) and mutual funds. This news has sent shockwaves through the financial world. This choice is a huge change from Vanguard’s long-held distrust of digital assets.
It might mean that the company would send billions of dollars into Bitcoin, Ethereum, and other crypto-linked products. The move comes after years of outright rejection. It shows that the market is changing and that regulations are becoming clearer.
However, it also makes you wonder how a conservative company like Vanguard can deal with the high-volatility crypto industry.
A Vanguard spokeswoman told Cointelegraph that the announcement is true and that the company’s products are now in line with those of traditional commodities like gold.
Clients will be able to trade certain crypto ETFs, including as ones that follow Bitcoin, Ether, XRP, and Solana, starting next week, as long as they meet strict regulatory requirements.
Vanguard has said clearly that it will not build its own crypto ETFs or promote new coin-based products. Instead, it will focus on a careful entry into the market with proven, regulatory vehicles.
A Big Change from Doubting Cryptos
It’s amazing how Vanguard has changed its mind. Tim Buckley, who was the CEO at the time, openly said that Bitcoin ETFs were not good for long-term investors, especially those saving for retirement, just 18 months ago. In an interview in May 2024, Buckley said that cryptocurrencies’ excessive volatility and speculative character made them not a good fit for Vanguard’s low-cost, passive investment philosophy. He said, “Bitcoin ETFs don’t belong in a diversified portfolio,” which was the same thing that had kept the company out of the industry even as competitors like BlackRock and Fidelity brought in $175 billion in new money for their spot Bitcoin and Ether funds.
Salim Ramji, a former BlackRock executive who ran the company’s worldwide ETF division, took over after Buckley retired in late 2024. Ramji, who was hired in August 2025, was careful at first, saying in a business message that Vanguard had no plans to launch crypto products right now. But because of growing client demand, the company has quietly changed direction under his leadership. A Vanguard study in September found that 28% of its retail clients were interested in crypto exposure, up from 12% in 2023. Institutional accounts said they had missed out on prospects in the $4 trillion digital asset sector.
The representative explained the reason: “Vanguard serves millions of investors with different levels of risk. We’re adding options to our platform that meet the demands of our clients, just like we do with gold-linked investments. This practical approach shows how Vanguard has changed: From being one of the first to offer index funds in 1975 to being a hesitant crypto player, but one that puts compliance and accessibility first.
What crypto goods will be on sale
Vanguard will only enter the market with ETFs and mutual funds from regulated issuers who have passed a lot of due investigation. The iShares Bitcoin Trust (IBIT) and Ether ETF (ETHA) from BlackRock, the Wise Origin Bitcoin Fund (FBTC) from Fidelity, and the XRP and Solana ETFs from Grayscale are all early signs. These vehicles, which the SEC approved as part of the 2024 spot ETF structure, give you indirect exposure without the hassle of managing your own wallet.
Vanguard’s risk-averse philosophy means that speculative products like meme coin ETFs or leveraged inverse funds are not included. The company will add these to its brokerage platform, making it easy to trade them together with equities and bonds. For the first three months, there will be no usual commissions. There may be limits on how much crypto you may put into retirement accounts like IRAs and 401(k)s—probably between 5% and 10%—to protect your long-term assets.
Eric Balchunas, who works for Bloomberg as an ETF analyst, said that the introduction “changed the game for retail access.” He said that only ETFs that fulfill Vanguard’s standards, like those with audited reserves and low expense ratios, will be eligible. This might make BlackRock’s 0.25% charge IBIT a better choice than other, more expensive options. Balchunas said on X, where his post had more than 10,000 likes, that “Vanguard’s stamp of approval could drive $50-100 billion in new flows.”
What Made the Change Happen
A number of things came together to make Vanguard change its mind. First, constant demand from clients: A poll of 2025 found that 35% of millennial and Gen Z clientele wanted crypto choices, rising from 15% in 2023. This is because digital assets are being known as a sign of progress. Second, there are regulatory tailwinds: The GENIUS Act’s approval in July 2025 made the regulations for stablecoins clearer. The Clarity Act, which is anticipated to pass in early 2026, lays out how to classify tokens, which eases Vanguard’s anxieties about “regulation by enforcement.”
Third, pressure from competitors: Competitors like Fidelity ($12 billion in Bitcoin ETF AUM) and Schwab have taken younger customers, which has hurt Vanguard’s 30% market share among retail investors under 40. Ramji, who has worked for BlackRock, sees the demographic change: “Our clients want to be part of the future of finance—crypto is part of that.”
Lastly, data on performance: Bitcoin’s 120% climb so far this year, together with gold’s 25% rise, show that other assets are worth investing in. Vanguard’s own gold ETFs have $235 million, which is only a small part of its $11 trillion in assets under management. However, the fact that crypto is high risk and high reward makes it appealing to growth-oriented portfolios.
Effects on the whole industry
According to Standard Chartered, Vanguard’s participation could start a wave of mainstream acceptance, putting $50-100 billion into spot ETFs and speeding up the growth of tokenized assets to $2 trillion by 2028. It’s great for issuers: BlackRock’s IBIT, which now has $80 billion in assets under management, may get more Vanguard referrals and reach $100 billion. Vanguard’s average charge is around 0.08%, which makes it easy for regular people to invest in bitcoin.
But there are still problems: Volatility is still a problem; Bitcoin’s 25% drop on October 25 wiped out $600 billion in the market, and Vanguard’s cautious restrictions may limit investment. Senator Elizabeth Warren and other critics warn of “speculative bubbles” in retirement accounts, which might lead to limitations or exposes.
For crypto, it’s proof: Digital assets are moving up from the fringes to the major leagues. Ramji said, “We’re not endorsing crypto; we’re giving people options.”
Conclusion
On December 2, 2025, Vanguard changed its mind about allowing third-party crypto ETFs for 50 million investors. This gives clients access to Bitcoin, Ether, XRP, and Solana under stringent rules. This might lead to $50–100 billion in new investments, making ETFs the best method to get into the market. Vanguard’s change normalizes crypto for the average person, but there are still concerns about volatility and control. This is a big step forward in the history of finance: The asset class grows from being thrown out to being more diverse.
