Vanguard Group has revised its long-held policy on digital assets and will now allow trading of cryptocurrency ETFs on its platform.

The shift marks a departure from the company’s previous public stance, which characterised crypto as excessively speculative and unsuitable for long-term portfolios.

The change reflects growing client demand and the rapid expansion of the market, highlighted by the success of BlackRock’s IBIT Bitcoin ETF, which has gathered roughly $70 billion in assets under management. By maintaining restrictions, Vanguard had been directing part of its client base toward competing providers.

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The firm’s earlier position was articulated by Janel Jackson, Vanguard’s global head of ETF Capital Markets: “In Vanguard’s view, crypto is more of a speculation than an investment.”

Janel Jackson, Vanguard’s Principal, Head of Bank and Institutional Services, LinkedIn
Janel Jackson, Vanguard’s Principal, Head of Bank and Institutional Services, LinkedIn

She noted that digital assets “have no inherent economic value, generate no cash flow, and can introduce unnecessary volatility into a portfolio.”

A Limited Policy Adjustment, Not a Strategic Pivot

The updated framework is a limited adjustment rather than a full strategic pivot. Under the new policy, Vanguard will allow trading most regulated crypto ETFs from third-party managers, treating them similarly to other non-core assets such as gold.

However, the company will continue restricting products tied to highly speculative meme coins, refrain from launching proprietary crypto funds and instead focus on providing access to external offerings.

Explaining the change, Andrew Kadjeski, head of brokerage and investments, said: “Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility… investor preferences continue to evolve.”

The decision comes more than a year after former BlackRock executive Salim Ramji, who has previously discussed the potential of blockchain technologies, was appointed as Vanguard’s CEO. His arrival had prompted expectations that the firm might eventually reconsider its approach to digital assets.

While the update does not signal a fundamental shift in Vanguard’s investment philosophy, it indicates a growing need to accommodate client interest in regulated crypto products and acknowledges the asset class's increasing relevance within the broader ETF market.

Market Context: A Volatile Backdrop for Digital Assets

The policy shift comes at a moment when cryptocurrency markets are experiencing renewed volatility. After briefly trading above $126,000 in October, Bitcoin has since fallen below $86,000 in early December, underscoring the asset’s sensitivity to shifts in broader risk sentiment.

Analysts describe the pullback as part of a broader risk-off tone heading into December, with investors reducing exposure to higher-volatility assets amid macroeconomic uncertainty and signs of buyer exhaustion following the strong rally earlier in the autumn.

Source: Finance Magnates