Vanguard Group, the world’s second-largest asset manager, announced it will allow bitcoin and crypto-linked exchange-traded funds (ETFs) and mutual funds to trade on its platform, reversing a policy that for years barred retail clients from accessing digital-asset products through the firm. Starting Tuesday, Vanguard brokerage customers will be able to trade ETFs and mutual funds that primarily hold select cryptocurrencies, including Bitcoin and other crypto, according to Bloomberg reporting. The move marks a shift for the firm, which has long argued that digital assets were too volatile and speculative for long-term portfolios.
The decision follows growing demand from both retail and institutional investors and comes after the approval of spot Bitcoin ETFs in January 2024 ushered billions of dollars into regulated crypto products. BlackRock’s iShares Bitcoin Trust, the largest of those funds, peaked near $100 billion in assets earlier this fall and still manages about $70 billion despite recent price declines. A Bitcoin ETF lets investors gain exposure to Bitcoin without actually buying or storing the cryptocurrency themselves; instead, the fund holds Bitcoin (or Bitcoin-related contracts) while investors simply buy shares on a stock exchange, with the share price moving alongside Bitcoin’s market value. It’s a convenient and easy way to get invested in Bitcoin.
More Institutional Money Coming into Bitcoin
Vanguard’s change opens access to crypto funds for more than 50 million brokerage customers who collectively oversee more than $11 trillion in assets, as of September 1, 2025. “Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” Andrew Kadjeski, Vanguard’s head of brokerage and investments, told Bloomberg. He added that back-office processes for servicing crypto funds have matured as investor preferences evolve.
The policy shift comes more than a year after Salim Ramji, formerly a top executive at BlackRock and a longtime blockchain advocate, took over as Vanguard chief executive. Ramji’s background in blockchain technology and his previous role at BlackRock are seen as pivotal factors in Vanguard’s evolving stance toward digital assets.
Vanguard Will Not Launch Its Own Crypto Products, Excludes Meme Coins
While Vanguard will support most crypto funds that meet regulatory requirements, the firm said it will not launch its own crypto products and will continue to exclude funds linked to meme coins. “While Vanguard has no plans to launch its own crypto products, we serve millions of investors with diverse needs,” Kadjeski said. Crypto-linked ETFs remain among the fastest-growing segments in U.S. fund industry history, even after a sharp market pullback, underscoring rising investor appetite for regulated exposure to digital assets.
BlackRock recently increased internal exposure to its IBIT spot Bitcoin ETF, with its Strategic Income Opportunities Portfolio now holding 2.39 million shares worth $155.8 million — up 14% since June. This additional allocation highlights the growing institutional confidence in crypto ETFs as a regulated asset class.
Market Reaction: Bitcoin Jumps Above $86,500
Bitcoin jumped on the news, trading above $86,500 at the time of writing. The price surge reflects the market’s optimism that more institutional capital will flow into the crypto space following Vanguard’s policy reversal.