Vanguard, recognized as the world’s second-largest asset management firm, will now allow its clients to trade cryptocurrency exchange-traded funds (ETFs) and mutual funds from Tuesday. This policy shift comes in response to a growing demand from both retail and institutional investors and marks a significant change from Vanguard’s previous reluctance to enter the crypto ETF realm.

A spokesperson from Vanguard confirmed that clients will gain third-party access to crypto ETFs similar to how the company manages gold investments:

“We serve millions of investors who have diverse needs and risk profiles, and we aim to provide a brokerage trading platform that gives our brokerage clients the ability to invest in products they choose.”

As per Bloomberg, only those ETFs that comply with regulatory requirements will be available. These include popular cryptocurrencies like Bitcoin (BTC), Ether (ETH), XRP, and Solana (SOL). However, Vanguard has ruled out any interest in memecoins or developing proprietary crypto ETFs.

Previous Stance on Crypto ETFs

Only a few months ago, Vanguard was staunchly opposed to introducing crypto ETFs, citing concerns over market volatility and the speculative nature of such assets. Tim Buckley, the former CEO, voiced concern regarding their suitability for long-term investments, particularly savings for retirement.

Salim Ramji, who took over leadership from Buckley, had maintained that stance just last August by dismissing the idea of offering crypto-related investment products.

A Potential Shift in the Market Landscape

Market observers are speculating that this unexpected change by Vanguard could lead to an influx of new investors in the crypto space. Some have predicted significant price increases for cryptocurrencies in the wake of this announcement. Nilesh Rohilla commented that Bitcoin could increase by 5% within the next 24 hours as a reaction to Vanguard’s announcement.

Source: Eric Balchunas

“It is another massive signal that traditional finance is fully stepping into digital assets. The wall of money is lining up,” stated the user BankXRP.

Vivek Sen noted, “trillions incoming” into the crypto market.