Investment adviser Vanguard now allows investments into third-party crypto ETFs and mutual funds, as per an official announcement on the company’s website.
Starting December 2nd, investors will be able to pick up their choice of crypto-asset in ETFs that are not Vanguard’s own investment products.
The update marks a shift in policy that Vanguard usually has of being skeptical of cryptocurrency. This is also the first time that Vanguard has added cryptocurrency investment products to its existing suite of services.
Multiple investment firms alongside Vanguard have also loosened their approach to cryptocurrency, offering investments into digital assets via ETFs, such as BlackRock, Fidelity Investments, GrayScale, and ArkInvest.
Bitcoin ETFs gained prominence in 2024, with the launch of multiple ETFs, but Vanguard’s current CEO, Salim Ramji, said he didn’t think they believed in a long-term portfolio.
Bitcoin recently experienced a dip in price, averaging lows of $85,000-$92,000, which came with huge outflows from ETFs of $3.5 billion in the form of withdrawals in November.
While Vanguard will be offering exposure to cryptocurrency, it has warned of the risks within the digital asset space, advising investors to understand the products offered and to consider how it fits within their asset allocation.
“Trading in cryptocurrency ETFs and mutual funds may involve significant risk and may not be suitable for all investors,” read the announcement.