Vanguard to Allow Crypto ETF Access for US Clients
- Vanguard allows US brokerage clients access to crypto ETFs.
- Vanguard will not launch proprietary crypto funds.
- Potential increase in crypto ETF inflows and market access.
Vanguard, with $10 trillion AUM, plans to offer U.S. clients access to third-party crypto ETFs, led by CEO Salim Ramji, enabling involvement but avoiding direct exposure.
The move may increase institutional crypto access, boosting ETF inflows while minimizing Vanguard’s risk, aligning with broader trends of mainstream financial integration with cryptocurrencies.
Vanguard, the world’s second-largest asset manager with $10 trillion in assets under management, plans to grant its US brokerage clients access to select crypto ETFs. The firm will offer access to third-party products instead of launching its own.
The initiative is led by CEO Salim Ramji, who previously oversaw BlackRock’s Bitcoin ETF launch. At a recent conference, he remarked,
“Vanguard will not copy competitors by launching its own crypto ETFs,”hinting at a strategy focusing on third-party offerings.
The decision enables U.S. retail and institutional clients to engage with crypto markets indirectly. Current offerings from competitors, such as Fidelity and Schwab, have already integrated similar products, potentially prompting further market growth.
Financial implications include potential increases in fund inflows to third-party ETFs without direct exposure risk for Vanguard. Carefully chosen high-liquidity ETFs will be available, aligning with Vanguard’s risk-aversion strategy.
Historically, new ETF launches have driven demand for underlying assets such as Bitcoin and Ethereum. BlackRock’s IBIT Bitcoin ETF saw significant inflows following its inception, a trend Vanguard hopes to replicate through indirect participation.
Regulatory developments, including SEC-approved standards, support broader crypto adoption. The market may experience increased volatility in related assets, echoing past shifts when new financial products gained mainstream attention.
