Vanguard caves on crypto to retain clients as rivals win flows — opens $9.3T platform to crypto ETFs

Vanguard, a major asset manager, will open its $9.3 trillion brokerage platform to spot Bitcoin, Ethereum, XRP, and Solana ETFs on December 2nd. This decision marks a significant shift for the company, which had previously avoided the crypto market due to volatility concerns. The move is driven by changing regulatory conditions, client demand – with 35% of younger, wealthy Americans leaving advisors lacking crypto access – and the success of rival firms like BlackRock and Fidelity in attracting crypto investment. Vanguard will not launch its own crypto funds but will provide access to products from other issuers. Experts predict modest initial flows but emphasize the long-term impact of Vanguard’s ‘sticky’ capital, which could create a structural ‘buy the dip’ mechanism and improve market liquidity. The change acknowledges that clients are already investing in crypto elsewhere and should be able to manage all their assets within a single Vanguard account.

(Source：CryptoSlate)