Vanguard reverses its long-standing crypto ban
Vanguard will now allow clients to trade crypto-focused ETFs and funds for the first time. The shift ends a years-long internal ban on cryptocurrency products across its retail brokerage platform. The firm manages more than 11 trillion dollars and serves over 50 million investors worldwide. Until now, those investors needed other brokers to access spot Bitcoin ETFs and similar products. Vanguard will list selected funds tracking Bitcoin, Ethereum and XRP, alongside existing stock and bond ETFs. It will treat these crypto products as non-core alternatives, similar to gold or commodity strategies.
The company still refuses to launch its own crypto ETFs, citing volatility and return concerns. Instead, it will offer third-party funds that pass its internal risk and compliance reviews. Vanguard says it will continue blocking the most speculative products, including leveraged and memecoin-themed vehicles. The decision follows strong client demand and rising competition from rivals embracing regulated digital asset exposure.
How crypto ETFs work for everyday savers
As a reminder, an ETF is a pooled fund you buy like a single share on an exchange. Its price tracks a basket of underlying assets, such as shares, bonds, gold or cryptocurrencies. Crypto ETFs let investors gain Bitcoin or Ethereum exposure without managing wallets, private keys or specialist exchanges. Everything appears inside the same Vanguard account used for index funds and retirement portfolios. Fees and tax treatment follow normal brokerage rules, which many traditional investors already understand. For experienced traders, the change removes operational friction and counterparty risk linked to offshore trading venues.
Vanguard’s pivot also signals that crypto has reached a new stage of institutional acceptance. A conservative, low-cost asset manager now recognises digital assets as part of diversified portfolios. Industry analysts expect billions of dollars to flow into crypto ETFs as hesitant investors finally gain easy access. That extra demand could increase liquidity and reduce trading spreads across the broader cryptocurrency market.
