Finally, I have waited for you! The $8 trillion asset management giant Vanguard has finally opened the door to Bitcoin ETF.

The world's second-largest asset management company, Vanguard, which manages up to $8 trillion, has officially announced the end of its years-long cryptocurrency ban. Starting December 2, over 50 million brokerage clients will be able to trade compliant ETFs and mutual funds of mainstream crypto assets such as Bitcoin, Ethereum, XRP, and Solana on the platform. This capitulation, seen by the market as the 'last bastion,' marks a significant milestone in the legitimization process of crypto assets within the traditional financial system. Even though the market is currently mired in a deep pullback, the long-term acceptance signal it sends remains deafeningly clear.

A Delayed Strategic Reversal: Why Did Vanguard Ultimately “Embrace” Crypto Assets?

In the world of TradFi, the name Vanguard is almost synonymous with “long-termism,” “low costs,” and “prudence.” It is this trillion-dollar giant, known for its stability, that has become the most enduring and steadfast fortress against the wave of crypto assets. For years, its executives have publicly criticized Bitcoin and other crypto assets for their “lack of intrinsic value” and “failure to generate cash flow,” excluding them from long-term strategies for retirement savings. Even after the approval of the spot Bitcoin ETF in the U.S. at the beginning of 2024, which set a historic record for fund inflows, Vanguard resolutely closed the channel for customers to purchase these products on its platform, a move that sparked significant controversy.

However, the power of the market is ultimately difficult to resist. In the face of continuous access demands from clients and the reality that BlackRock's IBIT and other Bitcoin ETFs have accumulated hundreds of billions of dollars in assets in just a few months, the internal objections at Vanguard appear increasingly pale. The company ultimately acknowledged that digital asset ETFs have demonstrated good operational liquidity and mature operating processes even amid severe market volatility. More critically, its clients increasingly expect to access a broader range of asset classes through a unified brokerage platform. This policy shift does not mean that Vanguard intends to personally issue crypto products, but rather to provide clients with access to compliant products, just as it does with other non-core assets like gold ETFs. This is essentially an extension of its “client-first” service philosophy in the new era.

Key Points of Vanguard's Policy Shift

Effective Date: December 2, 2025

Scope of Open: Allow trading of ETFs and mutual funds that hold compliant Crypto Assets such as Bitcoin, Ethereum, XRP, Solana, etc.

Explicit Exclusion: Prohibit all fund products associated with Memecoins.

Self-Positioning: Does not issue proprietary brand crypto products, only serves as a trading channel

Covering Customers: Over 50 million brokerage accounts

Historical Position: For a long time, resisted Crypto Assets on the grounds of “speculative” and “no intrinsic value”, and previously prohibited customers from purchasing spot Bitcoin ETF.

Who are the icebreakers? The synergy of leadership changes and market demands

Vanguard's delayed “shift” is not a momentary impulse but rather the result of changes in internal power structures and external market pressures. Former CEO Tim Buckley was seen as the main opponent of Crypto Assets within the company, and his departure removed the biggest internal obstacle. His successor, Salim Ramji, has a resume full of symbolic meaning—he comes from BlackRock and was deeply involved in the early blockchain and Crypto Assets initiatives of the asset management giant.

The arrival of Ramji has brought a different perspective to Vanguard. He did not aggressively push the company to issue its own crypto fund, but instead pragmatically supported opening up regulated crypto product trading access to clients. This strategy not only avoids the risk of Vanguard itself venturing into unfamiliar territory, but also responds to the urgent needs of clients, skillfully finding a balance between adherence to tradition and acceptance of innovation. This path choice contrasts with the practices of some other traditional financial institutions, showing that even as Vanguard transforms, it still carries its unique cautious imprint.

Meanwhile, it is important to note the pressure from its large customer base “voting with their feet.” When mainstream brokers and asset management counterparties are offering crypto asset services, Vanguard's ban actually poses a potential risk of client asset outflow. Especially in the context where the younger generation of investors sees crypto assets as an essential part of asset allocation, sticking to an absolute exclusion policy is tantamount to pushing the future towards competitors. Therefore, this opening is both a proactive adaptation and a passive defense; it is an inevitable choice to maintain its customer base and industry competitiveness.

The Deep Meaning of Moving Against the Market: Why Open During Market Downturns?

A noteworthy detail is that Vanguard chose to announce this decision against the backdrop of the cryptocurrency market experiencing a deep pullback and continuous net outflows from Bitcoin ETFs since early October. This is in stark contrast to the approach many companies take by chasing hot topics during bull market surges. This timing choice reveals the deeper logic behind Vanguard's decision-making: it is not a speculative chase of short-term market trends, but rather a strategic assessment based on the maturity of long-term infrastructure.

The company clearly stated in its announcement that despite fluctuations in market value, digital asset ETFs have “operated steadily and maintained liquidity” throughout the cycle. This indicates that the focus of Vanguard's decision-making team is not on the short-term ups and downs of asset prices, but rather on the structural robustness, regulatory clarity, and operational reliability of the related financial products. After nearly a year of market testing, compliance crypto products represented by spot Bitcoin ETFs have proven their resilience and maturity as financial instruments, satisfying the core risk control requirements of institutions like Vanguard.

In other words, opening during a market frenzy may be interpreted as catering to a bubble; whereas opening during a period of market calm or even winter seems more like a “gold rush” behavior based on fundamental value. This action sends a stronger signal to the market than shouting calls during a bull market: even if prices fall, the infrastructure and institutional framework of Crypto Assets as an asset class have become solid enough to be accepted by the most conservative financial institutions. This undoubtedly injects long-term confidence into the entire industry.

Investor Guide: What Can and Can't Be Done on the Vanguard Platform?

For Vanguard's more than 50 million clients, this change means a new category of tools in their investment toolbox. Starting December 2, investors can conveniently buy or sell mainstream spot Bitcoin ETFs (such as IBIT, FBTC), spot Ether ETFs, and other compliant registered funds holding assets like XRP and Solana in their Vanguard brokerage accounts, just like buying and selling stocks or other ETFs. This greatly simplifies the path for traditional investors to access the crypto world, without the need to open additional crypto asset exchange accounts or deal with complex issues like private key management.

However, this opening is not an unrestricted “full lifting of bans”; investors must be clear about its boundaries. First, Vanguard explicitly excludes funds related to “Memecoins”. This means that any fund product defined by the SEC as primarily investing in Memecoins cannot be traded on the platform. This reflects Vanguard's attempt to maintain its “cautious” product selection baseline while expanding access.

Secondly, Vanguard emphasizes that there are “no plans” to launch its own branded Crypto Assets products. This means that investors are purchasing products issued by third-party asset management companies (such as BlackRock, Fidelity, etc.), with Vanguard only providing trading and custody platform services. For investors, it is still essential to carefully research the specific fund managers, fee structures, and tracking targets when making decisions.

Investment advice for investors: For Vanguard clients who are optimistic about Crypto Assets as part of their macro allocation in the long run, this undoubtedly provides great convenience. It is recommended to allocate it as a small, high-risk exposure in the investment portfolio and adopt a dollar-cost averaging strategy to smooth out market volatility risks. At the same time, it is essential to understand the underlying assets, volatility characteristics, and associated risks of the products being invested in, avoiding bringing short-term speculative sentiment into long-term retirement investment accounts.

Vanguard's “turnaround” marks a significant conclusion to the epic of the integration of Crypto Assets and TradFi in 2024. When the most stubborn opponents finally open the doors for compliant crypto products, it marks the end of an era. It announces the evolution of crypto assets from being a marginal and controversial speculative asset to one of the standardized options that mainstream financial institutions cannot ignore and must provide. This is not only an entry for products but also an acceptance of a paradigm. Although the road ahead is still fraught with volatility and regulatory challenges, once the door to the future is opened, there is no turning back. For the industry, the most difficult “ice-breaking” has already been completed, and the next chapter will be about scale, innovation, and deeper integration.