- Vanguard is reportedly eyeing the inclusion of third-party crypto ETFs in its clients’ investment portfolios.
- A source said the company is “methodical” in its approach amid the rising demand for these crypto-based investment products.
In an exciting twist, Vanguard is reportedly preparing to offer third-party cryptocurrency exchange-traded funds (ETFs) on its brokerage platform. Former Fox Business journalist Eleanor Terret, citing “a source familiar with the matter,” confirmed the news.
Vanguard is the second-largest asset management firm in the world. It holds over $10 trillion in assets under management (AUM). Terret, through her Crypto In America platform, claimed that the company decided to join the crypto bandwagon following overwhelming client demand for digital assets. In addition, it was driven by the developments in the USA’s regulatory climate.
Vanguard Not Launching Its Own Spot Bitcoin or Crypto ETFs
Despite its decision to expand its offerings to include crypto ETFs, Terret’s source pointed out that Vanguard remains firm on its previous stance that it won’t launch its own Bitcoin (BTC) or crypto ETFs. Since last year, the company has shut down speculations that it is planning to compete with the likes of BlackRock and Fidelity Investments for spot Bitcoin ETFs.
Vanguard CEO Salim Ramji, a veteran from BlackRock, reiterated their company’s position at the July Morningstar Investment Conference. However, he notably dodged questions as to whether they are considering offering third-party crypto ETFs in the future.
A Methodical Approach
In an official statement last year, the private asset management group explained that it’s not allowing such a product because it comes from “an immature asset class that has little history, no inherent economic value, no cash flow, and can create havoc within a portfolio.” Nonetheless, like BlackRock, which referred to BTC as the “index of money laundering” over the years, things are about to change.
Terret’s anonymous insider said Vanguard is “methodical” in its approach this time around. It now understands that market dynamics have considerably evolved since 2024.
Vanguard has yet to comment on Terret’s revelation. The report also didn’t provide a timeline for the inclusion of crypto ETFs in the platform.
Spot Bitcoin and Ethereum ETFs in the US
Spot Bitcoin and Ethereum (ETH) ETFs have dramatically grown since their launch last year. So far, these have been the USA’s most successful crypto-based investment products.
As of Friday’s market close, US spot Bitcoin ETFs have already accumulated $56.781 billion in net inflows. BlackRock’s IBIT contributed $60.818 billion in the figures, but the $24.161 billion net outflows in Grayscale’s converted GBTC product suppressed the market’s overall performance.
Meanwhile, spot Ethereum ETFs showed $13.141 billion in net inflows. Again, BlackRock’s ETHA led the charge with its $13.158 billion share, only to be dragged by the Grayscale ETHE’s $4.573 billion negative net inflows.
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