Vanguard’s Strategic Retreat
Vanguard, the $10 trillion asset management giant, is preparing to offer its brokerage clients access to third-party crypto ETFs. The move, reported on Sept. 26 by journalist Eleanor Terrett, highlights a major shift in institutional attitudes toward digital assets.
Internal groundwork and external discussions are underway, according to a source familiar with the plans. The source said Vanguard is being “very methodical,” responding to both rising client demand and evolving regulatory clarity since spot Bitcoin ETF approvals in 2024. Importantly, Vanguard has no plans to launch its own crypto products.
From Rejection to Reconsideration
In January 2024, Vanguard blocked client access to newly approved spot Bitcoin ETFs, calling them incompatible with its philosophy of equities, bonds, and cash as the foundation of long-term portfolios. The firm argued Bitcoin’s volatility clashed with its investment strategy.
However, market dynamics and leadership changes have since paved the way for a reevaluation.
Leadership Shift Under Salim Ramji
The appointment of Salim Ramji as CEO in mid-2024 proved pivotal. Ramji, who oversaw the launch of BlackRock’s iShares Bitcoin Trust (IBIT), brought direct experience in digital assets to Vanguard’s leadership.
Bloomberg’s Eric Balchunas previously predicted that Ramji could soften Vanguard’s stance within a couple of years. He characterized such a move as incremental rather than radical, given Vanguard already offers exposure to commodities like gold ETFs.
A Contradictory but Deliberate Approach
Despite its public rejection of crypto, Vanguard quietly built an 8% stake in Strategy, a firm viewed as a publicly traded Bitcoin proxy. This investment, accumulated across various funds, contrasted with its stated philosophy and signaled a nuanced strategy toward digital asset exposure.
Vanguard’s current direction suggests less of an abrupt reversal and more of a deliberate CEO-led evolution, positioning the firm to adapt to a rapidly changing investment landscape.
