Vanguard Reverses Ban: Clients Can Now Trade Third-Party Crypto ETFs
As of December 2, 2025, Vanguard has reversed its long-standing prohibition on cryptocurrency-related investment products. The firm will now allow its brokerage clients to trade a selection of third-party crypto ETFs and mutual funds, marking a major shift in its stance toward digital assets.
A Major Policy Reversal After Years of Resistance
For years, Vanguard firmly opposed cryptocurrency exposure, even refusing to list Bitcoin and Ethereum ETFs approved by the U.S. Securities and Exchange Commission. This approach positioned the company as the most anti-crypto among major U.S. brokerages.
The new policy does not introduce Vanguard-branded crypto funds, but it does unlock access to popular third-party ETF issuers, including:
- BlackRock
- Fidelity
- Bitwise
- Ark 21Shares
Why Vanguard Changed Its Mind
Analysts say the move follows increasing customer pressure, competitive risks, and the rapid institutionalization of digital assets. ETFs have made crypto exposure easier, regulated, and more acceptable to traditional investors.
A Vanguard spokesperson stated that the decision aligns with “client demand and market evolution toward regulated investment vehicles.”
What Clients Can Trade Now
Under the updated rules, clients may access:
- Spot Bitcoin ETFs
- Spot Ethereum ETFs
- Diversified multi-asset crypto funds
- Certain blockchain-themed mutual funds
However, Vanguard still excludes high-risk leveraged crypto products.
Impact on the Broader Market
This reversal strengthens the ongoing mainstream adoption of crypto ETFs. Vanguard’s clientele skews older and more conservative, meaning their entry into regulated crypto investment could attract billions in new inflows.
This article is for informational purposes only and does not constitute financial advice.
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