"Vanguard considering allowing crypto asset ETFs for brokerage account clients…possible shift from previous policy"

Global asset manager Vanguard is reportedly considering allowing investors with brokerage accounts access to cryptocurrency exchange-traded funds (ETFs).

On the 26th (local time), crypto-focused outlet The Block reported, citing sources, that "Vanguard has no plans to launch its own crypto ETF, but is exploring ways to provide customers access to third-party-managed products." This suggests a potential change in the company’s long-standing negative stance on digital asset products. However, specific timing and products have not yet been finalized.

Vanguard is the world’s second-largest asset manager, with over $10 trillion in assets under management (AUM). When spot Bitcoin ETFs were first approved in the U.S. in January last year, Vanguard refused to offer them, saying they "are not suitable for generating long-term returns due to high volatility." Expectations for change rose that year when Salim Ramji, a Bitcoin-friendly figure who led BlackRock’s ETF division, was appointed CEO, but at the time the company reiterated that it had no plans to launch its own product.

Eric Balchunas, Bloomberg senior ETF analyst, wrote on X (formerly Twitter) that "Vanguard appears to be moving to effectively lift its ban on Bitcoin ETFs," adding that "Bitcoin and Ethereum ETFs are explosively popular, and the new CEO has experience leading the iShares Bitcoin Trust (IBIT) during his time at BlackRock."