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- Vanguard is preparing to let brokerage clients access crypto ETFs.
- The firm remains cautious, opting not to launch its own products.
- Regulators are now showing more support for digital assets.
According to the report, the world’s second-largest asset manager, Vanguard, is exploring ways to give brokerage customers access to crypto ETFs. The firm oversees more than $10 trillion in assets. Unlike rivals Fidelity and Charles Schwab, Vanguard has avoided direct involvement with digital assets until now.
As per sources, the company started discussions with external partners. This follows rising demands from customers who are interested in gaining exposure to crypto markets. Vanguard, however, has no intentions of launching products of its own in the near future, like what BlackRock has recently rolled out.
Instead, it’s contemplating giving a nod to an unspecified number of third-party ETFs. No deadline has been established and the lineup of potential funds hasn’t been decided upon either. The direction change is also attributed to the evolution of markets and a more favorable regulatory climate.
CEO Salim Ramji Brings BlackRock Experience to Vanguard
Rules have gotten clearer since 2024, and investor interest has spiked. Leadership at Vanguard seems attuned to the fact that opting out would put it behind competitors who already offer crypto exposure.
Vanguard’s CEO, Salim Ramji, adds an extra dimension of interest. Ramji comes from a background of working with BlackRock, during which he helped with the creation of its successful Bitcoin ETF. The product has now passed $80 billion in assets following strong inflows.
Some market observers wonder if Ramji intends to do the same at Vanguard, even though the company isn’t going to roll out its own crypto vehicles. At an industry gathering last month, Ramji confirmed Vanguard has no crypto ETFs plans of its own.
But he also left the door open to releasing external products, fanning rumors a decision is nearing. The move is in line with Vanguard’s conservative nature but does recognize the direction of cryptocurrencies.
U.S. Regulators Shift Toward Crypto Engagement
The timing also favors Vanguard. There has been a shift from hostile to friendly approach by US regulators. The Securities and Exchange Commission has approved fuller crypto ETF guidelines and cleared major digital coin-index funds.
Meanwhile, the SEC and CFTC work more closely together than ever before. Their joint effort is aimed at harmonizing rules, especially with respect to tokenized assets and derivatives. In the view of industry executives, their cooperation has the power to redefine markets and bring transparency to both institutions and individual investors.
Nevertheless, there is still insecurity. The CFTC does not have a permanent chairman, and changes in leadership might hamper progress. Forasset managers such as Vanguard, stability in regulatory policies will be paramount when deciding next moves to join the crypto sector.
Related Reading: Metaplanet Expands Into U.S. and Japan as Bitcoin Holdings Hit $2.3 Billion
