- Vanguard – the world’s second-largest asset manager (~$10 trillion AUM) – is reportedly preparing to let its US brokerage clients buy cryptocurrency ETFs, reversing its long-standing ban cryptoinamerica.com 1 .
- The shift is driven by strong client demand, a more favorable regulatory climate, and new CEO Salim Ramji (a former BlackRock crypto ETF executive) coinlaw.io cryptoinamerica.com. Ramji has explicitly said Vanguard won’t launch its own crypto funds, but he hasn’t ruled out listing third-party crypto ETFs cryptoinamerica.com 2 .
- If approved, Vanguard would only offer existing crypto ETFs (e.g. BlackRock’s Bitcoin ETF, Fidelity’s, Grayscale’s, etc.), not create its own cryptoinamerica.com coinspeaker.com. This mirrors recent SEC actions: in Sept 2025 new generic listing rules now allow crypto ETFs (beyond Bitcoin/Ethereum) to launch much faster reuters.com 3 .
- Vanguard’s move comes amid a broader industry trend. Rival firms like BlackRock and Fidelity already have popular Bitcoin/Ethereum ETFs, and Wall Street players (e.g. Morgan Stanley/ETrade) are rapidly adding crypto access coinspeaker.com coincentral.com. BlackRock’s Bitcoin ETF (IBIT) alone has amassed over $80 billion in assets since Jan 2024 cryptoinamerica.com cryptoslate.com.
- Market experts say Vanguard’s entrance would further legitimize crypto. ETF issuers (BlackRock, Fidelity, Grayscale, etc.) stand to gain new inflows, while other brokers (Schwab, Robinhood) may feel pressure to expand crypto services markets.financialcontent.com coincentral.com. As one analyst puts it, Vanguard’s reported U-turn is “a significant crack in the dam of institutional resistance to cryptocurrencies” markets.financialcontent.com 4 .
- Challenges remain: Vanguard must balance crypto’s volatility with its low-cost, long-term-investor ethos. It will have to pick which ETFs to list, ensure regulatory compliance, and educate cautious clients – all while not undermining its conservative brand coinlaw.io 5 .
Background: Vanguard’s Historic Crypto Caution
For years Vanguard famously shunned cryptocurrencies. Its founder, John Bogle, viewed Bitcoin as “speculative” and not fitting Vanguard’s long-term, value-focused philosophy cryptoslate.com coinlaw.io. Even after the first US spot Bitcoin ETFs launched in Jan 2024, Vanguard refused to list them on its brokerage platform coinlaw.io cryptoslate.com. By early 2024 it had removed even Bitcoin futures products from its offerings. In short, Vanguard had been a crypto outlier among big asset managers cryptoslate.com 6 .
That stance began to shift with the arrival of CEO Salim Ramji (formerly a top BlackRock ETF executive) in mid-2024. Ramji’s background includes overseeing BlackRock’s launch of its Bitcoin ETF, and Wall Street pundits quickly noted he might ease Vanguard’s anti-crypto stance cryptoinamerica.com coinspeaker.com. Yet as late as July 2025 Ramji publicly reiterated Vanguard would not copy competitors by creating its own crypto ETFs. Importantly, he “sidestepped” questions about simply listing third-party crypto products for clients cryptoinamerica.com, leaving the door open for change.
News: Vanguard Eyes Crypto ETFs for Clients
On September 26, 2025, multiple outlets reported that Vanguard is “preparing to allow access to crypto ETFs on its brokerage platform” cryptoinamerica.com coinlaw.io. A source told Crypto In America that Vanguard has begun “laying the groundwork” to grant clients exposure via established crypto ETFs, not developing any new crypto funds itself cryptoinamerica.com coinlaw.io. The firm is moving “very methodically,” the source said, noting “the dynamics have been changing since 2024” cryptoinamerica.com. That change in dynamics refers to booming crypto ETF inflows and a friendlier regulatory regime (discussed below).
Media reports quoted a Twitter “scoop” by crypto reporter Eleanor Terrett: “Vanguard Eyes Crypto ETF Access for Brokerage Clients” coinspeaker.com. Bloomberg ETF analyst Eric Balchunas even quipped on social media that Vanguard looks to end its “Bitcoin ETF ban (aka bend the knee lol)”, underscoring the industry buzz. At press time, Vanguard had not issued an official statement, but sources stress this is more than mere rumor – it reflects internal strategy talks. In short, Vanguard’s famously cautious stance may finally be softening.
Why Now: Clients, CEO and Regulation
Several forces seem to be converging. First, investor demand for crypto is surging. Many Vanguard clients want regulated exposure to Bitcoin/Ethereum, and might otherwise seek it via other firms. Industry analysts note it’s “tough to ignore” the massive inflows into peer offerings cryptoslate.com coinspeaker.com. Second, leadership has changed. CEO Salim Ramji, a known crypto advocate, is steering strategy. He brings a playbook from BlackRock’s successful Bitcoin ETF era – for context, IBIT has seen over $60 billion of net inflows since Jan 2024 and now holds ~$80 billion cryptoinamerica.com. Under Ramji, Vanguard seems motivated to serve client interests while staying true to its conservative roots. Third, the regulatory environment has improved. The current U.S. administration and regulators (SEC/CFTC) have taken pro-innovation steps. In late Sept 2025 the SEC adopted a new generic listing rule for crypto ETFs, slashing approval time from ~270 days to ~75 days for qualified funds reuters.com. This streamlining (already boosting alt-coin ETFs for coins like SOL, XRP and ADA) means established ETF issuers can launch new products almost on a fast track reuters.com 7 .
CoinLaw’s analysis sums it up: “Vanguard, historically cautious on digital assets, is weighing giving brokerage clients access to crypto ETFs” because of client demand and a “regulatory environment that is becoming more favorable” coinlaw.io. Industry surveys echo that many mainstream investors now expect crypto in ETF form. In short, Vanguard is aligning itself with evolving client preferences and rules.
Competitors and Products: Who’s Already There
Vanguard would be catching up to a wave. BlackRock and Fidelity – Vanguard’s largest ETF rivals – have already embraced crypto ETFs. BlackRock launched its iShares Bitcoin Trust (IBIT) in Jan 2024 (now ~$80B AUM) and an Ethereum fund that just had record inflows coinspeaker.com cryptoslate.com. Fidelity has its own Bitcoin ETF (Wise Origin Bitcoin Trust) and Ethereum ETF, which have attracted billions. Even smaller crypto-focused issuers (Grayscale’s converted Bitcoin Trust, Bitwise, ARK) are well-known to investors. As Coinspeaker notes, “the move comes as rivals like BlackRock, Fidelity, and Morgan Stanley are deepening their involvement in the digital asset space” 8 .
Other financial platforms are expanding too. Morgan Stanley’s ETrade is set to roll out direct crypto trading (Bitcoin, Ether, Solana, etc.) in early 2026 cryptoinamerica.com coincentral.com. Charles Schwab, Robinhood and crypto-friendly brokerages already offer various crypto access, but Vanguard’s entry would still be momentous given its reputation. CoinCentral observes that Vanguard’s “conservative approach” has made it an outlier, so this shift highlights how widely crypto is spreading in finance 9 .
Potential Impact: Legitimacy and Flows
If Vanguard does list crypto ETFs, it would be a huge validation for the industry. MarketMinute writes that this “would further legitimize” crypto as an institutional asset, potentially unlocking “substantial capital flows into crypto-linked vehicles” markets.financialcontent.com markets.financialcontent.com. In practical terms, issuers like BlackRock, Fidelity, Grayscale, etc. would likely see big inflows as Vanguard’s vast client base could buy their ETFs. ETF managers may even jockey to have their fund included on Vanguard’s platform. BlackRock’s recent Bitcoin and Ethereum ETFs alone have drawn over $70 billion of inflows combined cryptoslate.com, evidence of the appetite.
Analysts say this is a “watershed moment”. CryptoSlate reports that industry watchers (e.g. ETF expert Nate Geraci) long believed Vanguard’s crypto resistance “could not last indefinitely” once rivals proved crypto ETFs’ viability cryptoslate.com. Bloomberg’s Balchunas likened Vanguard’s change to “bending the knee,” signaling that even staunch skeptics are giving way. Crypto strategists note that a Vanguard endorsement would likely boost overall crypto liquidity and stability, as a new wave of institutional investors gain easier access through a trusted brand markets.financialcontent.com 10 .
There would also be competitive shake-ups. Firms slow to add crypto might face pressure as Vanguard wins over younger or risk-tolerant clients. For example, if Vanguard clients can buy crypto ETFs internally, some might move assets from other brokers or attract new investors – pressuring even crypto-friendly platforms to keep innovating markets.financialcontent.com coincentral.com. In short, Vanguard’s pivot could trigger a domino effect of wider crypto adoption in traditional portfolios.
Challenges and Considerations
Vanguard won’t adopt crypto lightly. The firm’s core values – low fees, simplicity, long-term investing – must mesh with volatile, complex crypto products. As CoinLaw notes, Vanguard is taking “a methodical approach, weighing regulatory risks, client demand, and how to integrate such products in line with its brand” coinlaw.io coinlaw.io. Key challenges include: picking which ETFs (likely the most liquid, transparent ones); ensuring clients understand crypto risks; and staying strictly compliant with SEC/CFTC rules coinlaw.io coincentral.com. Any “misstep” could clash with Vanguard’s reputation for protecting investors.
Moreover, not all Vanguard clients will jump on crypto. Some may prefer bonds and index funds. Vanguard will need to assess demand internally. CoinCentral warns that balancing “clients interested in digital assets” with the “long-standing commitment to low-cost, diversified solutions” will be crucial coincentral.com. Education and risk controls (e.g. limits on trading) will likely accompany any rollout. Nevertheless, Vanguard’s sheer size means that even a modest crypto allocation by its clients represents billions of dollars.
Outlook: The Road Ahead
For now, this is a “reportedly” story. Vanguard has not confirmed details or timing. Investors will be watching for an official announcement – likely outlining exactly which crypto ETFs will be allowed and under what safeguards. If history is any guide, such changes would require SEC filings or approvals, so any launch might take weeks or months. Meanwhile, ETF issuers and rivals are already positioning. In the coming days and weeks we may see analysts revising forecasts and more commentary from crypto and finance experts.
In the long run, Vanguard’s move (if it happens) will redefine “mainstream” crypto access. According to MarketMinute, it would “democratize access to an asset class previously perceived as niche,” by putting Bitcoin and Ethereum ETFs on the shelves of a mass-market brokerage markets.financialcontent.com. For the crypto industry, it would mark the flattening of a final bastion of resistance in traditional finance. As one commentator put it, Vanguard’s crypto pivot would be like “the last penny dropping” – after which other holdouts will have to follow suit or be left behind cryptoslate.com markets.financialcontent.com. In any event, late September 2025 may go down as the moment mainstream finance officially acknowledged crypto’s staying power.
Sources: News reports and analyses from Crypto In America, CoinCentral, CoinLaw, CoinSpeaker, CryptoSlate, Reuters, and others cryptoinamerica.com coinlaw.io coinspeaker.com cryptoslate.com reuters.com markets.financialcontent.com. These informed expert insights and the latest market developments summarized here.
