Vanguard Considering Crypto ETF Access for 50M Clients

The world’s second-largest asset manager, Vanguard, could be getting ready to offer crypto exposure to its clients. According to a scoop from CryptoInAmerica, the entity is finally beginning to cater to digital assets in response to increasing client demand for digital asset products. 

Last Friday, an anonymous source told CryptoInAmerica that Vanguard is already holding internal discussions about the viability of offering crypto-related products on its platform. That scoop was confirmed yesterday by venues like Bloomberg and Yahoo Finance. 

Despite managing over $10 trillion in assets-under-management, Vanguard still doesn’t offer a crypto ETF, unlike competitors such as BlackRock and Fidelity, who have already launched digital asset funds. 

And as of right now, there are no indications that the asset manager is planning to file for its own crypto ETF. Rather, Vanguard is planning to open its platform to third-party crypto ETFs, allowing clients to gain exposure via regulated financial products. 

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Digital assets exposure on Vanguard would be a practical win for crypto, gaining visibility on one of the largest retail investment platforms in the world. With that said, it’s an even bigger symbolic win, as Vanguard has historically opposed crypto as a long-term investment.

The shift in stance towards crypto can likely be attributed to Vanguard’s CEO, Salim Ramji, who took office about a year ago. Ramji was a longtime BlackRock senior advisor and oversaw the launch of BlackRock’s Bitcoin ETF products, which ended up being a tremendous success. 

Less than two years after it was launched, BlackRock’s Bitcoin ETF (IBIT) now manages over $87 billion in BTC. The product became the fastest ETF in history to reach over $70 billion AUM, showcasing that investor appetite for crypto exposure is not only strong but in demand. 

For Vanguard, continuing to ignore crypto-related products would mean being left behind in a market that has already shown a clear appetite for regulated digital asset exposure.