In a significant shift that underscores the growing mainstream acceptance of digital assets, Vanguard Group, one of the world's largest asset managers, has announced it will open its platform to crypto exchange-traded funds (ETFs) and related mutual funds. This pivotal decision, effective December 2nd, marks a notable reversal from its previous cautious stance, granting over 50 million customers access to the rapidly evolving crypto market.
Vanguard's Strategic Reversal
Vanguard's turnaround on crypto ETFs comes after years of resisting the trend, having previously deemed cryptocurrencies as highly speculative and too volatile for traditional investment portfolios. However, by September 2025, the firm began signaling a change, citing overwhelming client demand as a primary driver. Andrew Kadjeska, Vanguard's head of brokerage and investments, emphasized that crypto ETFs have demonstrated resilience through market volatility, matured administrative processes, and continued evolution in investor preferences. Initially, access will be limited to ETFs tracking Bitcoin, Ethereum, Ripple, and Solana, though Vanguard has clarified it has no plans to launch its own proprietary crypto products.
Market Context and Industry Reaction
The timing of Vanguard's approval is particularly noteworthy, arriving after a market rout erased over $1 trillion in value following an October pullback. Despite this, the broader crypto ETF market experienced record growth throughout 2025, with U.S. spot Bitcoin ETFs alone reaching an impressive $170 billion in AUM by October, led by BlackRock. While a subsequent Q4 rout saw AUM figures decline, the sector recently experienced a $1.07 billion rebound in inflows, partly fueled by expectations of a Fed rate cut. Industry leaders like Bitwise CEO Hunter Horsley see Vanguard's move as a strong indicator that crypto is rapidly entering the mainstream, while ETF Prime founder Nate Geraci noted Vanguard finally "caved" to the inevitable demand.
