Vanguard Now Launches Crypto ETF Trading as Bitcoin Hits $91,000 (+7%)
Vanguard has begun allowing clients to trade cryptocurrency exchange traded funds managed by outside providers for the first time, marking a cautious step into a sector the firm once dismissed as speculative.
The shift, first reported by Bloomberg and confirmed by Vanguard on Tuesday, permits investors to buy products such as BlackRock’s iShares Bitcoin Trust ETF through the company’s brokerage platform. Clients can also access other third party crypto ETFs and mutual funds.
According to Bloomberg, the head of Vanguard’s brokerage business said the crypto products have performed as designed, even through bouts of market turbulence.
The Pennsylvania based investment giant stressed that it has no intention of launching its own crypto funds. Instead, it is focused on providing a platform that allows clients to invest in whatever products they select.
Hunter Rogers, co founder of the global bitcoin yield protocol TeraHash, called the decision significant, suggesting it could speed up mainstream acceptance of digital assets in diversified portfolios. He noted it was a notable pivot for Vanguard, which previously characterised crypto as unsuitable for long term investing.
Rogers added that growing client demand was likely the key driver behind Vanguard’s move.
Bitcoin Rebounds as Investors Return
Bitcoin rallied more than 7 percent on Tuesday, briefly moving above $92,000 before easing back toward $91,000 later in the afternoon. Even with the rebound, the cryptocurrency remains roughly 28 percent below its all time high reached in October.
Crypto ETFs have seen strong inflows since bitcoin surged toward its October 6 peak of $126,272.76. That same wave of demand has also triggered waves of profit taking and outflows in recent months.
Jim Ferraioli, director of crypto research and strategy at the Charles Schwab Center for Financial Research, said the average cost basis for United States spot bitcoin ETFs since their launch in January 2024 sits near $84,000. Bitcoin briefly approached that level in late November before bouncing, which Ferraioli said suggests price support. A sustained move below $84,000 could spark heavier selling pressure.
Read more: Why Diageo shares keep 14% sliding while BT 9% stages a comeback
A Strategic Move, Not Full Endorsement
Despite adding crypto ETFs to its offering, Rogers cautioned that Vanguard’s move is not a complete embrace of digital assets.
He said Vanguard still declines to launch its own crypto funds and continues to prohibit trading in highly volatile tokens often labelled meme coins. In his view, the decision appears defensive, aimed at preventing clients from moving to rival platforms that already support crypto.
Markets Also Push Higher
Equity markets firmed on Tuesday after a soft start to December. The S&P 500 rose 0.4 percent, the Dow Jones Industrial Average gained 0.6 percent, and the Nasdaq Composite edged 0.8 percent higher, according to FactSet.
