Vanguard to Allow Bitcoin, Ethereum and XRP ETF Trading in Major Crypto Pivot

Source: CryptoNewsNet Original Title: Vanguard to Allow Bitcoin, Ethereum and XRP ETF Trading in Major Crypto Pivot Original Link: Vanguard is opening its brokerage platform to crypto-focused ETFs and mutual funds, abandoning a stance that had kept digital-asset products off its shelves for years.

Beginning Tuesday, the firm will permit trading in funds that hold Bitcoin, Ethereum, XRP, and Solana, putting crypto exposure on the same footing as other non-core assets it already accommodates, such as gold.

The change gives more than 50 million brokerage customers access to regulated crypto wrappers across the U.S. fund industry.

The pivot follows months of internal review and comes as client interest in digital assets has persisted through a sharp market pullback.

Eleven spot Bitcoin ETFs that debuted in early 2024 pulled in heavy inflows, lifting their combined assets to about $25 billion within the first month. Vanguard’s refusal to offer access left the firm on the sidelines as those assets swelled to roughly $125 billion in under two years.

A certain major asset manager’s Bitcoin Trust, the largest of the group, now holds about $70 billion, down from a peak near $99.5 billion.

While crypto represents one of the smallest fractions of that manager’s $13.5 trillion in assets under management globally, Vanguard—the world’s second-largest asset manager—manages roughly $11 trillion.

In July 2024, Salim Ramji took over as Vanguard CEO.

Unlike his predecessor, Tim Buckley, and the company at large, Ramji is a public supporter of both Bitcoin and blockchain.

According to ETF analysts, it was the “first time ever” that Vanguard has hired externally for its top job.

Ramji had worked for Vanguard’s biggest competitor, serving as head of index investments at a certain major asset manager. Notably, Ramji oversaw the filing and logistics for their Bitcoin ETF product.