Cryptopolitan
2025-09-26 15:52:01

Vanguard falls in love with the crypto market, offers third-party ETFs

The global asset manager, Vanguard, is preparing to allow access to crypto ETFs on its brokerage platform. Reportedly, the company has begun laying the groundwork and holding external discussions due to strong client demand for digital assets and a shifting regulatory environment. The mutual fund giant with $10 trillion in assets under management has, until now, remained on the sidelines regarding digital assets. For the longest time, it has opted for a more conservative approach than rivals Fidelity Investments and Charles Schwab. Vanguard looks to list Bitcoin ETFs on their platform, contrary to their previous views. Life happens fast! They also have a new CEO. https://t.co/HXnR1PeS1S — Gabor Gurbacs (@gaborgurbacs) September 26, 2025 There are currently no plans for Vanguard to launch its own products, as BlackRock has done. Instead, the firm is considering letting brokerage customers access select third-party crypto ETFs. “They’re being very methodical in their approach, understanding the dynamics have been changing since 2024,” the source said. Vanguard falls in love with the crypto market This initiative is most likely being pushed by Vanguard’s CEO, Salim Ramji. He oversaw the launch of BlackRock’s wildly successful Bitcoin ETF IBIT, which has seen over $60 billion in net inflows since its debut in January 2024 and now holds more than $80 billion in assets. Since taking the helm at Vanguard last year, investors have looked forward to seeing if he will take a page from his former boss Larry Fink’s playbook. However, in July at the Morningstar Investment Conference, Ramji said that Vanguard will not copy competitors by launching its own crypto ETFs. However, he sidestepped questions about offering access to third-party crypto ETFs on the platform. Industry watchers such as Nate Geraci of The ETF Store have long expected the company to be influenced. He argued that Vanguard’s resistance could not last indefinitely once competitors proved the viability of crypto ETFs. Vanguard’s new approach to crypto can be linked to several factors, including the improved regulatory environment and the success of crypto ETFs. Over the past year, the Trump administration has reshaped the US regulatory landscape, directing it toward a more pro-crypto direction. Also, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), two of the most important financial regulators, are working together increasingly to make digital asset rules clearer and simpler. As reported by Cryptopolitan, the two will have a joint roundtable on regulatory harmonization on Monday. Their collaborative approach has transformed what was once an unregulated frontier into a more structured market, which has sparked big interest from institutions and sped up growth in the crypto sector as a whole. At the same time, the major success of the Bitcoin and Ethereum ETFs has undoubtedly influenced the asset management firm’s decision. Spot Bitcoin and Ethereum funds have attracted more than $70 billion in inflows since launching last year, bringing their total assets to over $150 billion. Meanwhile, other major firms are expanding crypto access for their clients. Morgan Stanley partnered with Zerohash to enable E*Trade clients to trade Bitcoin, Ether, and Solana directly through traditional brokerage accounts, with rollout starting in the first half of 2026. BlackRock’s IBIT records inflows amidst major outflows While many ETFs reported losses, BlackRock’s iShares Bitcoin Trust (IBIT) drew $79 million in inflows, showing its strong market position. Other major ETFs faced substantial withdrawals, including Fidelity’s FBTC, Bitwise, ARK 21Shares, Franklin, VanEck, and Grayscale. Fidelity’s fund lost $114.8 million, Bitwise posted $80.5 million, and ARK’s ARKB saw $63 million exit. In addition, analysts say that Bitcoin ETFs collectively maintain net-positive inflows exceeding $57 billion since their launch. This shows its enduring confidence in the sector. Strong inflows into BlackRock’s fund suggest investor preference for well-established platforms during turbulent periods. Ether ETFs recorded $251 million in outflows on Thursday. This added to weekly withdrawals of $547 million as Ethereum traded near $3,900, down 8% on the day and 21% from last month’s highs. This triggered more than $1.1 billion in liquidations of leveraged positions. BlackRock also set up a “Bitcoin Premium ETF,” which shows that big investors are still interested in organized crypto exposure. These developments suggest that, even amid corrections, major players continue to innovate and diversify offerings, betting on long-term growth. Get up to $30,050 in trading rewards when you join Bybit today

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