Vanguard Group will allow exchange-traded funds and mutual funds linked to bitcoin and cryptocurrencies to trade on its platform, reversing a long-standing policy that prohibited retail clients from accessing digital asset products through the company.
Starting Tuesday, Vanguard Securities customers will be able to trade ETFs and mutual funds that hold certain cryptocurrencies, primarily Bitcoin and other cryptocurrencies, Bloomberg reports.
The move marks a shift for the world’s second-largest asset manager, which has long argued that digital assets are too volatile and speculative for long-term portfolios.
The decision comes in response to growing demand from both retail and institutional investors, and comes after billions of dollars flowed into regulated crypto products with the approval of a Spot Bitcoin ETF in January 2024.
The largest of these funds, BlackRock’s iShares Bitcoin Trust, had nearly $100 billion in assets earlier this fall and still manages about $70 billion despite the recent price decline.
Bitcoin ETFs allow investors to gain exposure to Bitcoin without actually purchasing or storing the cryptocurrency themselves.
Instead, the fund holds Bitcoin (or Bitcoin-related contracts), and investors simply buy shares on a stock exchange, and the stock price moves in line with Bitcoin’s market value. This is a convenient and easy way to invest in Bitcoin.
More institutional capital flows into Bitcoin
Vanguard’s changes will make crypto funds accessible to more than 50 million brokerage customers with more than $11 trillion in assets under management as of September 1, 2025.
“Crypto ETFs and mutual funds have been tested through periods of market volatility and have performed as designed while maintaining liquidity,” Andrew Kageski, head of brokerage and investments at Vanguard, told Bloomberg.
He added that the back-office processes servicing crypto funds are maturing as investor preferences evolve.
The shift comes more than a year after former BlackRock CEO and longtime blockchain advocate Salim Ramzi took over as Vanguard’s chief executive.
Vanguard will support most crypto funds that meet regulatory requirements, but the company said it will not launch its own crypto products and will continue to exclude funds related to meme coins.
“While Vanguard has no plans to launch its own crypto products, we serve millions of investors with diverse needs,” Kageski said.
Crypto-linked ETFs remain one of the fastest-growing segments in U.S. fund industry history despite the sharp market decline, underscoring investor appetite for exposure to regulated digital assets.
BlackRock recently increased its internal exposure to its IBIT Spot Bitcoin ETF, and its Strategic Income Opportunities portfolio now holds 2.39 million shares worth $155.8 million, an increase of 14% since June.
Bitcoin jumped on the news, trading above $86,500 at the time of writing.
