Bitcoin News Update: Vanguard Shifts Stance on Crypto: Established ETFs and Growing Investor Interest Bring Digital Assets Into the Mainstream

Vanguard Embraces Crypto ETFs, Opening New Investment Opportunities

Vanguard Group, managing $11 trillion in assets and ranking as the world’s second-largest asset manager, has shifted its stance on digital currencies. As reported by Bloomberg, the company has now enabled its brokerage clients to access regulated cryptocurrency ETFs and mutual funds. This change, effective as of Tuesday, allows Vanguard’s 50 million customers to invest in funds linked to Bitcoin, Ether, XRP, and Solana.

This move marks a major departure from Vanguard’s previous position, where it had labeled digital assets as excessively volatile and speculative for serious investors.

Rising Demand Fuels Change

The decision comes amid increasing interest from both institutional and retail investors seeking exposure to cryptocurrencies. Since the introduction of U.S. spot Bitcoin ETFs in January 2024, these products have attracted $120 billion in assets. BlackRock’s IBIT ETF alone has grown to $70.7 billion in managed assets. Andrew Kadjeski, who leads Vanguard’s brokerage and investment division, pointed to the growing maturity of crypto ETF infrastructure and shifting investor preferences as key reasons for the policy update.

Vanguard plans to support most crypto funds that comply with regulatory requirements, excluding those associated with memecoins or lacking SEC approval. The firm has also clarified that it does not intend to launch its own crypto products in the near future.

Industry Trends and Competitive Landscape

The broader financial landscape highlights the significance of Vanguard’s move. BlackRock, once skeptical of cryptocurrencies, has become a major player in the space. Its Bitcoin ETFs now generate more revenue than many of its traditional equity and bond funds. The IBIT ETF, launched in January 2024, reached $70 billion in assets faster than any previous ETF and now holds over 3% of all Bitcoin in circulation. Meanwhile, ether ETFs have attracted close to $20 billion in investments, signaling a wider embrace of digital assets by institutions, as noted by Coinpedia.

Crypto Resilience Amid Market Fluctuations

Vanguard’s entry into the crypto ETF market also underscores the sector’s durability, even after a $1 trillion decline in crypto market value since October 2025. Regulated crypto investment products continue to draw significant capital. For instance, XRP ETFs saw $644 million in inflows during November, reflecting a shift by institutional investors toward regulated offerings. This trend suggests that digital assets are increasingly being recognized as a mainstream asset class rather than a speculative outlier.

Blurring the Lines Between Traditional and Digital Finance

The decisions by Vanguard and BlackRock represent a broader trend of integrating cryptocurrencies into conventional finance. As Kadjeski observed, the operational processes for managing crypto ETFs have evolved to meet investor needs, providing clients with a wider selection of digital asset products. With crypto ETFs often outperforming many traditional investment options in both growth and liquidity, the distinction between traditional and digital finance is rapidly diminishing.