Vanguard Considers Launching Crypto ETFs as Regulatory Barriers Fall and Competitors Move Forward
- Vanguard, managing $10T in assets, plans to offer crypto ETFs via third-party options, reflecting rising demand and U.S. regulatory easing. - The SEC's 2024 rule changes reduced crypto ETF approval times to under 75 days, spurring a surge in filings and projected 2025 Q4 market "boom." - Unlike rivals like Fidelity, Vanguard prioritizes regulatory clarity over in-house crypto products, aligning with its cautious "methodical" approach. - Institutional Bitcoin ETF holdings rose 33% in 2025, with Vanguard's
Vanguard, which manages assets exceeding $10 trillion and is the world’s second-largest asset manager, is getting ready to make cryptocurrency exchange-traded funds (ETFs) available to clients on its brokerage platform for the first time. This move signals a response to increasing interest in digital assets among investors and a more favorable regulatory climate in the United States. Vanguard Set to Launch Crypto ETFs [ 1 ] Although Vanguard has traditionally been wary of cryptocurrencies, the company has started internal discussions and is laying the foundation for this change. However, it does not plan to introduce its own crypto ETFs in the near future. Instead, Vanguard is considering whether to allow access to certain third-party crypto ETFs, though a final decision has yet to be made Vanguard Prepares to Offer Crypto ETFs to Its Clients On Its … [ 2 ].
The company’s strategy has been called “deliberate,” reflecting the shifting landscape of the crypto sector since 2024. Salim Ramji, Vanguard’s CEO and former leader of BlackRock’s successful
The broader market environment highlights the importance of Vanguard’s potential entry. In late 2024, the U.S. Securities and Exchange Commission (SEC) simplified the approval process for crypto ETFs, cutting review times from as long as 270 days to less than 75 days. This regulatory update has triggered a surge in ETF applications, with companies aiming to launch new funds linked to assets such as
Vanguard’s potential involvement in the crypto ETF sector fits into a larger trend of institutional adoption. Institutions now hold more than 410,000 Bitcoin through ETFs, marking a 33% rise in institutional holdings compared to earlier in 2025. This figure is likely conservative, since only institutions managing at least $100 million are required to disclose their positions. BlackRock’s IBIT continues to lead the market, but competition is heating up as companies like Grayscale and Bitwise join the fray. With its vast client network and reputation for affordable, regulated investment options, Vanguard’s platform could make crypto ETFs more accessible to a wider audience Vanguard Set to Launch Crypto ETFs [ 1 ].
This development also reflects the SEC’s changing approach to digital assets. During the Trump administration, the agency approved new listing rules that removed the need for individual reviews of crypto ETFs that meet certain standards. These regulations, which took effect in 2024, have lowered entry barriers, allowing for quicker launches and encouraging innovation. For Vanguard, a company known for its conservative stance, even limited access to crypto ETFs would represent a major strategic change and signal a broader acceptance of digital assets in mainstream finance Vanguard Prepares to Open Brokerage Access to Crypto ETFs [ 3 ].
Industry experts suggest that Vanguard’s decision could have a ripple effect on the market. By enabling access to third-party crypto ETFs, the firm could boost demand for regulated investment products and set an example for other asset managers. Nonetheless, there are still hurdles, such as educating investors about lesser-known cryptocurrencies and the risk of an overcrowded ETF market. As the sector evolves, Vanguard’s focus on regulatory adherence and client priorities may become a benchmark for balancing innovation with prudent risk management Crypto ETFs set to flood US market as regulator … [ 4 ].
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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