Vanguard Group has capitulated. The world’s second-largest asset manager will allow Exchange Traded Funds (ETFs) and mutual funds holding select cryptocurrencies to be traded on its platform starting today, 2 Dec 2025.
The move marks a complete reversal for the asset manager, which has been the primary holdout on Wall Street since spot Bitcoin ETFs launched in January 2024. According to Bloomberg, the decision opens access to regulated crypto products for Vanguard's 50mn brokerage customers, bringing the firm in line with rivals like Fidelity and Charles Schwab.
Eligible funds include those holding Bitcoin, Ether, XRP, and Solana. However, the firm maintains strict guardrails: it will not launch its own proprietary crypto products, and funds tied to "meme coins", as defined by the SEC, remain excluded.
Bowing to pressure
For nearly two years, Vanguard maintained that crypto was "too volatile" for long-term portfolios. That stance has softened following the appointment of CEO Salim Ramji, a former BlackRock executive who took the helm more than a year ago.
Andrew Kadjeski, Vanguard’s head of brokerage, stated that the infrastructure has finally met their standards. "Cryptocurrency ETFs and mutual funds have been tested... performing as designed while maintaining liquidity," Kadjeski told Bloomberg.
Late to the party
Vanguard enters the market during a significant downturn. The sector has suffered a drawdown of more than $1tn since October, and BlackRock’s IBIT ETF has seen assets slide to $70bn from a peak of nearly $100bn.
Despite the timing, the firm cited "persistent demand" from both retail and institutional clients as the driver behind their decision. While Vanguard will not create its own digital inventory, this move effectively removes the last major friction point in the US wealth management sector for crypto access.
The Ramji Effect
The reversal is inextricably linked to the background of CEO Salim Ramji. Before joining Vanguard, Ramji served as the Global Head of iShares at BlackRock, where he explicitly oversaw the filing and launch of the IBIT Bitcoin ETF, the very product Vanguard initially banned.
His appointment signaled a shift in Vanguard's rigid "Boglehead" philosophy. By allowing these products, Vanguard closes the competitive gap with:
- Fidelity: Which has offered crypto trading and its own spot ETFs since early 2024.
- Charles Schwab: Which has allowed access to third-party crypto ETFs since their inception.
- BlackRock: Which dominates the sector Ramji helped build.
The exclusion of "meme coins" suggests Vanguard is attempting to thread a needle: accepting "blue chip" digital assets (BTC, ETH, SOL, XRP) as investable commodities, while categorizing the rest of the market as gambling.
