Vanguard to Allow Bitcoin, Ethereum and XRP ETF Trading in Major Crypto Pivot
Analysis
Price Impact
HighVanguard, the world's second-largest asset manager, opening its platform to bitcoin, ethereum, xrp, and solana etfs signifies a massive shift in institutional stance and provides access to over 50 million brokerage customers. this move brings significant new capital potential into the crypto market.
Trustworthiness
HighReported by bloomberg, a highly reputable financial news source, and directly concerns a policy change by a major financial institution (vanguard). the appointment of a crypto-supportive ceo from blackrock (who oversaw ibit filing) further solidifies the veracity.
Price Direction
BullishThe decision by vanguard will likely lead to increased demand and inflows into these crypto assets as millions of traditional investors gain easy access via a trusted platform. this broadens the investor base significantly beyond existing crypto-native platforms.
Time Effect
LongWhile there might be an initial positive market reaction, the full effect of 50 million potential new investors gradually allocating capital to these etfs will play out over months and years, contributing to sustained demand.
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Article Content:
In brief The firm will open trading for funds holding Bitcoin, Ethereum, XRP and Solana, aligning crypto with other non-core assets it already supports. The move follows months of internal review and comes amid steady demand despite a broader market pullback. Vanguard previously sat out the rapid growth of spot U.S. Bitcoin ETFs, whose combined assets climbed from $25 billion in early 2024 to about $119 billion. Decrypt’s Art, Fashion, and Entertainment Hub. Discover SCENE Vanguard is opening its brokerage platform to crypto-focused ETFs and mutual funds, abandoning a stance that had kept digital-asset products off its shelves for years. Beginning Tuesday, the firm will permit trading in funds that hold Bitcoin, Ethereum, XRP, and Solana, putting crypto exposure on the same footing as other non-core assets it already accommodates, such as gold, Bloomberg reported . The change gives more than 50 million brokerage customers access to regulated crypto wrappers across the U.S. fund industry. The pivot follows months of internal review and comes as client interest in digital assets has persisted through a sharp market pullback. Roughly 10 spot Bitcoin ETFs that debuted in early 2024 pulled in heavy inflows, lifting their combined assets to about $25 billion within the first month. Vanguard’s refusal to offer access left the firm on the sidelines as those assets swelled to roughly $119 billion in under two years. BlackRock’s iShares Bitcoin Trust, the largest of the group, now holds about $70 billion, down from a peak near $99.5 billion, SoSovalue data shows. While crypto represents one of the smallest fractions of BlackRock’s $13.5 trillion in assets under management globally, Vanguard—the world’s second-largest asset manager—manages roughly $1.5 trillion. Last July, iShares veteran Salim Ramji took over as Vanguard CEO. Unlike both his predecessor, Tim Buckley, and the company at large, Ramij is a public supporter of both Bitcoin and blockchain. According to Bloomberg ETF analyst Eric Balchunas, it’s the “first time ever” that Vanguard has hired externally for its top job, with the analyst tweeting earlier this year that he was “semi-shocked” by the move. Less than one year ago, Ramij worked for Vanguard’s biggest competitor, serving as Head of iShares and Index Investments at BlackRock. Notably, Ramij oversaw the filing and logistics for the iShares Bitcoin Trust (IBIT), which is now the world’s most-traded Bitcoin ETF. Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Your Email Get it! Get it!