Vanguard will allow crypto trading on its platform through mutual funds and ETFs

Source: CritpoTendencia Original Title: Vanguard will allow crypto trading on its platform through mutual funds and ETFs Original Link: The tough times in the cryptocurrency market do not seem to stop the strong attraction these assets hold for major institutional players. This time, the asset management giant Vanguard announced it will allow trading of crypto products on its platform, specifically exchange-traded funds (ETF) and mutual funds related to Bitcoin, Ethereum, and other coins.

This is a highly significant step that leaves behind the financial firm’s previous rejection of the cryptocurrency world. Trading will be enabled this Tuesday, representing a major boost for the crypto sector among large portfolios.

Until recently, Vanguard’s stance was that digital coins were too volatile as assets. They argued this volatility was an obstacle to their involvement in the financial system, since it could create imbalances in serious portfolios. However, it was the very demand from large and medium-sized portfolios that prompted this change of opinion within the firm.

In addition, the board likely feels the pressure of falling behind other firms that were first movers in the world of virtual currencies. For example, BlackRock, Vanguard’s main rival, already has an established presence in the crypto sector with notable success, even amid sharp market corrections.

Vanguard senses it will be left behind in the crypto sector

Since October, the cryptocurrency market capitalization has lost more than $1 billion. This is one of the strongest shocks in the crypto world in recent years and shows no clear signs of reversing in the short term. In this context, Vanguard will allow trading of products based on the crypto world on its platform.

The calculations are simple: BlackRock’s exposure to the sector has brought in $62.5 billion with its IBIT ETF alone. This is a monumental figure reached in a relatively short time, making corrections like the current one seem secondary from an institutional perspective.

In this way, the narrative of volatility and danger takes a back seat. Maintaining that stance would have deprived Vanguard of preserving its competitiveness amid the evolving financial system and its convergence with blockchain.

Crypto ETFs and mutual funds have been tested during periods of market volatility and have performed as intended, while maintaining liquidity, noted the firm’s head of brokerage and investment, Andrew Kadjeski, in September. At that time, Vanguard gave its first indication of a change in its stance toward crypto trading.