Vanguard, the world’s second-largest asset manager, is opening its brokerage platform to crypto-focused Exchange-Traded Funds (ETFs) and mutual funds. This marks a significant policy reversal after years of public resistance, potentially channeling a new wave of mainstream investment into digital assets like Bitcoin and Ether.

Starting this week, the firm’s U.S. clients can trade third-party funds that primarily hold cryptocurrencies, provided the products meet regulatory standards. According to a Bloomberg report, Vanguard will treat these crypto funds similarly to other non-core assets, such as gold.

Pressure from Rivals and New Leadership

The success of competitor BlackRock’s iShares Bitcoin Trust (IBIT) appears to have been a key factor in the decision. IBIT became the fastest ETF in history to reach approximately $70 billion in assets, demonstrating deep demand for regulated Bitcoin exposure on Wall Street and generating hundreds of millions in fees.

Vanguard had previously argued that tokens like Bitcoin were too speculative for long-term portfolios. The company initially blocked clients from trading spot Bitcoin ETFs after their landmark launch in January 2024. At the time, former CEO Tim Buckley stated that a Bitcoin ETF didn’t belong in a typical retirement account, cementing the firm’s crypto-skeptical reputation.

However, leadership has since changed. Salim Ramji, a former BlackRock executive who oversaw its massive ETF business and has spoken favorably about blockchain’s potential, took over as Vanguard’s CEO this year.

A Cautious Embrace of Digital Assets

Under the new policy, Vanguard will list most regulated third-party crypto ETFs but will exclude products tied to memecoins. The company stressed that it still has no plans to launch its own crypto products and continues to view direct crypto exposure as speculative.

A company spokesperson, Kadjeski, clarified the firm’s position. “While Vanguard has no plans to launch its own crypto products, we serve millions of investors that have diverse needs and risk profiles, and we aim to provide a brokerage trading platform that gives our brokerage clients the ability to invest in products they choose.”