Vanguard Group has announced that it will now allow crypto and bitcoin-linked ETFs and Mutual Funds to be traded on its platform. This is a change from the previous policy, which for many years prevented retail customers from accessing these digital assets through Vanguard.
Start Tuesday Vanguard Bloomberg reports that brokerage clients will soon be able trade select cryptocurrency ETFs, such as Bitcoin, and mutual funds. reporting.
It is an important shift for the second-largest global asset manager. has long argued that digital assets The investments were too volatile to be used as long-term investment portfolios.
This decision is a result of the growing interest from retail and institutional investors. The approval of Bitcoin ETFs on January 20, 2024 led to billions of dollars flowing into crypto products that are regulated.
BlackRock’s iShares Bitcoin Trust is the largest fund. peaked In the fall of this year, it managed assets worth nearly $100 billion.
Bitcoin ETFs allow investors to gain exposure without buying the crypto currency or even storing it.
Instead, investors purchase shares at a stock market, and the price of the share moves along with Bitcoin’s current value. The fund is an easy and convenient way for investors to buy Bitcoin.
Bitcoins to receive more institutional funding
Vanguard’s new change allows more than 50,000,000 brokerage customers to access crypto funds. These clients collectively manage over $11 trillion of assets by September 1, 2025.
“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” Bloomberg reported that Vanguard’s chief of brokerages and investments Andrew Kadjeski.
The back-office process for managing crypto funds has evolved as investors’ preferences have changed, he said.
Salim Ramji – formerly the top executive of BlackRock, and longtime advocate for blockchain technology – made a similar policy change more than one year ago. took over As Vanguard Chief Executive.
Vanguard has said that while it supports most crypto funds which comply with regulatory requirements, it won’t launch any of its own and continues to exclude all funds linked to meme coin.
“While Vanguard has no plans to launch its own crypto products, we serve millions of investors with diverse needs,” Kadjeski says.
Even after the recent market correction, crypto-linked ETFs are still among the fastest growing segments of U.S. funds, highlighting the increasing investor demand for exposure to digital assets.
BlackRock has recently been announced increased internal exposure to its IBIT spot Bitcoin ETF, with its Strategic Income Opportunities Portfolio now holding 2.39 million shares worth $155.8 million — up 14% since June.
Bitcoin’s price jumped to $86,500 on this news.
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Source: bitcoinmagazine.com
