Vanguard Prepares to Offer Crypto ETFs to Its Clients On Its Brokerage Platform

Vanguard, the world’s second-largest asset management company, is working towards allowing its brokerage platform clients to invest in cryptocurrency exchange traded funds (ETFs). The firm is the largest mutual fund issuer and manages over $10 trillion of assets while being a major provider of ETFs.

According to a report by Crypto in America, Vanguard said that it has begun laying the groundwork and holding external discussions in response to strong client demand for digital assets and a shifting regulatory environment. The firm clarified that there are currently no plans for Vanguard to launch its own products, as BlackRock has done. Instead, the firm is considering letting brokerage customers access select third-party crypto ETFs, though it remains unclear when a decision will be made or which products would be offered.

“They’re being very methodical in their approach, understanding the dynamics have been changing since 2024,” a spokesperson said to Crypto in America. 

Salim Ramji, the CEO of Vanguard and a 10-year veteran of BlackRock, was responsible for the launch of BlackRock’s Bitcoin ETF IBIT, which has brought in more than $60 billion in net inflows since January 2024 and now has more than $80 billion in assets. Many people are wondering if he will follow in the footsteps of his former boss, Larry Fink, since he took over at Vanguard last year.

At the Morningstar Investment Conference in July, Ramji said again that Vanguard will not copy its competitors by launching its own crypto ETFs. However, he did not answer questions about whether the platform would allow access to third-party crypto ETFs. 

Rise in crypto-based ETFs

The rise in crypto-based ETFs started in 2024, when the SEC gave the green light for the first spot Bitcoin ETFs. This was a big change in mainstream finance, as it let both institutional and retail investors get regulated access to Bitcoin without actually owning it. 

BlackRock’s iShares Bitcoin Trust (IBIT) quickly became the most popular ETF, bringing in billions of dollars and changing the way ETFs work. Leon Waidmann, the Research Director at the Onchain Foundation, said that the company’s crypto ETF business makes $260 million a year, with $218 million coming from Bitcoin ETFs and $42 million coming from Ethereum products. 

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