Vanguard Considers Major U-Turn on Crypto, Set to Offer Bitcoin ETFs to Clients

Vanguard, the world’s second-largest asset manager with $11 trillion in funds, appears to be reversing its staunch opposition to spot Bitcoin ETFs. Despite initially refusing to offer these products on its platform when they launched in January 2024—and publishing a blog post calling crypto an "immature asset class" with "no inherent economic value" (which has now reportedly been taken down)—the company is rumored to be considering allowing clients to access Wall Street products with indirect exposure to Bitcoin (BTC) and Ether (ETH).

The Driving Forces Behind the Potential Shift

This potential U-turn is seen by many as a significant reaction to market pressure, contrasting with the actions of rivals BlackRock (the world’s largest asset manager) and Fidelity, both of whom quickly became market leaders in crypto ETFs.

The likely reasons for the change of heart include:

• New Leadership: The shift is likely linked to the company’s new CEO, Salim Ranji, who previously worked at BlackRock and has publicly expressed positive views on cryptocurrency.
• Institutional Demand: Insatiable institutional demand for digital assets has put pressure on Vanguard, as clients question why they are restricted from products embraced by other major financial firms.
• Awkward Positioning: Vanguard is already a major indirect holder of Bitcoin through its large ownership of MicroStrategy stock, primarily due to its index-tracking funds.

The Immense Impact of an Open Door

If Vanguard, which serves over 50 million customers, opens its platform, it could trigger a massive influx of capital into crypto:

• Significant Capital: Given Vanguard manages $11 trillion in assets, even a small portion of its customer base—say, 1%—dabbling in BTC for the first time could mean 500,000 new investors accessing the asset.
• Retail Catalyst: Analysts suggest that retail investors have been less active in the current BTC bull run. Vanguard’s decision could be a game-changer, opening the floodgates for everyday investors, not just deep-pocketed institutions.

A Vanguard spokesperson was coy when asked for confirmation, stating the company "continuously evaluate[s] our brokerage offer, investor preferences, and the evolving regulatory environment."

This new direction stands in stark contrast to the views of Vanguard’s late founder, Jack Bogle, who famously urged the public in 2017 to avoid Bitcoin "like the plague," arguing that it had no inherent value or cash flow.

October 2025, Cryptoniteuae