Vanguard Reverses Policy and Approves Bitcoin ETF Trading


Vanguard Reverses Policy and Approves Bitcoin ETF Trading


Vanguard Group will start allowing investors to trade Bitcoin and digital asset ETFs on its brokerage platform, ending its previous restrictions on these products.

Starting Tuesday, the firm’s clients will be able to access funds with significant exposure to Bitcoin. 

Vanguard had previously expressed concerns about the volatility and speculative nature of Bitcoin.

The change follows continued demand from both retail and institutional investors. 

Spot Bitcoin ETFs, launched in January 2024, have accumulated substantial inflows since their introduction. BlackRock’s IBIT ETF currently manages approximately $70 billion.

Vanguard’s updated policy will expand the range of regulated Bitcoin and digital asset-related funds available to more than 50 million brokerage customers.

Bitcoin-linked ETFs have grown rapidly within the U.S. fund market since their launch.

“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” said Andrew Kadjeski, head of brokerage and investments at Vanguard.

“The administrative processes to service these types of funds have matured; and investor preferences continue to evolve.”

The decision comes more than a year after Salim Ramji, previously an executive at BlackRock, became Vanguard’s chief executive officer. 

The firm stated that it will permit most Bitcoin and digital asset-focused ETFs and mutual funds that meet applicable regulatory standards, similar to its approach for other specialized investment categories.

Vanguard also said it does not plan to introduce its own digital asset products and will continue to exclude funds tied to memecoins as defined by the Securities and Exchange Commission.

“While Vanguard has no plans to launch its own crypto products, we serve millions of investors that 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,” Kadjeski said.

Share this article

The link has been copied!





Source link