Vanguard considers opening crypto ETF options to US clients: Report - Crypto Economy

TL;DR

• Vanguard shift: The $10 trillion asset manager is considering allowing US brokerage clients access to third-party crypto ETFs after years of avoiding digital assets.
• Leadership factor: CEO Salim Ramji, who oversaw BlackRock’s Bitcoin ETF success, is fueling speculation despite denying plans for proprietary products.
• Industry context: Favorable SEC rules and competitor moves like Morgan Stanley’s crypto integration are pressuring Vanguard to adapt.

Vanguard, the world’s second-largest asset manager, is weighing a significant shift in its digital asset strategy by considering access to crypto ETFs for its US brokerage clients. The move would mark a departure from the firm’s historically cautious stance on crypto, aligning it more closely with competitors that have already embraced digital asset products.

Vanguard’s Conservative History Meets Client Demand

With $10 trillion in assets under management, Vanguard has long avoided direct involvement in cryptocurrency markets, preferring a conservative approach compared to rivals like Fidelity and Charles Schwab. According to sources familiar with the matter, the firm has begun internal groundwork and external discussions in response to growing client demand and a changing regulatory environment. Unlike BlackRock, which launched its own Bitcoin ETF, Vanguard is not expected to create proprietary products but may instead provide access to select third-party crypto ETFs.

Leadership Influence and Market Context

The firm’s CEO, Salim Ramji, previously played a key role at BlackRock in launching the successful Bitcoin ETF IBIT, which has attracted more than $60 billion in net inflows since January 2024. While Ramji has publicly stated that Vanguard will not replicate competitors by launching its own crypto ETFs, his leadership has fueled speculation about whether the company will expand client access to digital assets. At a recent industry conference, he avoided directly addressing questions about third-party ETF availability, leaving the timeline and scope of any decision uncertain.


Regulatory Shifts Encourage Expansion

The regulatory climate has become more favorable for crypto investment products. The Securities and Exchange Commission recently approved a generic listing standard to accelerate ETF approvals and authorized index funds containing leading cryptocurrencies. This shift has emboldened asset managers to explore broader offerings, with industry observers noting that Vanguard’s cautious but deliberate approach reflects the evolving landscape since 2024. The firm’s potential entry into crypto ETFs would signal growing mainstream acceptance of digital assets within traditional finance.

Competitive Pressures and Industry Trends

Other major brokerages are already expanding crypto access. Morgan Stanley, through its E*Trade division, is preparing to offer direct trading of Bitcoin, Ether, and Solana to millions of clients. As competitors integrate digital assets into traditional platforms, Vanguard faces pressure to respond to investor expectations. While no timeline has been confirmed, the firm’s consideration of crypto ETF access underscores the increasing convergence of Wall Street institutions and the digital asset economy.