Vanguard, the world’s second-largest asset manager, is reportedly preparing to give its U.S. brokerage clients access to crypto ETFs. Multiple media reports have confirmed that the asset manager is in preliminary talks to enable third-party cryptocurrency ETFs on its platform. This is a significant pivot from its historically cautious stance.
Vanguard’s move would not involve launching its own crypto ETFs (unlike BlackRock), but rather providing access to curated, third-party products. The firm is said to be “methodical” in its approach, gauging evolving regulations, client demand, and marketplace mechanics. No timeline has been made public, nor is there clarity on which ETFs might first be allowed.
Competitive catch-up
For the longest time, Vanguard has trailed competitors like BlackRock, Fidelity, and Morgan Stanley, which have aggressively embraced crypto ETF products. With tens of trillions under management, even modest adoption could channel meaningful capital into crypto ETFs, impacting fund flows, liquidity, and pricing. This move could help it stem outflow pressure and retain clients asking for digital asset exposure.
Vanguard’s reputation is built on long-term investing and low fees. Founded in 1975 by John C. Bogle, the AMC is a leading provider of mutual funds and ETFs, and a dominant name in passive investing. Historically, Vanguard has shied away from digital assets. In 2024, they removed Bitcoin futures from their platform and declined to permit spot crypto ETFs.
Risk & brand at stake
In recent years, its internal leadership has evolved. The current CEO, Salim Ramji, a former BlackRock executive, is viewed as more open to innovation while still emphasizing risk controls. Any misstep in crypto offerings, be it volatile products, regulatory surprises, or execution issues, could damage hard-earned trust.
For customers, Vanguard’s entry into crypto ETFs could shift the competitive dynamics and fund flow patterns across the industry.