On December 2, Vanguard Group, the world’s second-largest asset management firm, will open access to trading ETFs and mutual funds based on cryptocurrencies. This was reported by Bloomberg.
The products in question are registered offerings based on Bitcoin, Ethereum, and other altcoins like XRP and Solana.
Previously, the company stated that it would avoid Bitcoin funds, as cryptocurrency is considered an “immature asset class” and does not align with the company’s philosophy.
Vanguard’s change in stance comes less than a year after a former BlackRock manager took over as CEO. In September, reports emerged that the firm was considering opening access to regulated crypto platforms for more than 50 million brokerage clients, collectively managing $11 trillion.
BlackRock, Vanguard’s largest competitor, launched a spot Bitcoin ETF in January 2024. At the time of writing, the assets of the structure amount to approximately $66 billion.
Despite recent price corrections, cryptocurrency-linked exchange-traded products remain one of the fastest-growing segments in the history of the U.S. fund industry, Bloomberg noted. It is anticipated that the market will view Vanguard’s move as a psychological boost and further evidence that traditional finance cannot resist the allure of digital assets.
“Cryptocurrency ETFs and mutual funds have been tested during periods of market volatility, demonstrating expected results and maintaining liquidity. The administrative procedures for servicing these instruments have matured, and investor preferences have shifted,” said Andrew Kadjeski, head of Vanguard’s brokerage and investment services.
Nevertheless, the company does not plan to create its own digital currency-based products in the near future.
From November 21 to 28, crypto funds attracted $1.07 billion, breaking a four-week streak of outflows.