For years, Vanguard was one of the most steadfast opponents of crypto among major traditional asset managers. Its policy barred clients from investing in cryptocurrency exchange-traded funds (ETFs), citing concerns that digital assets were too volatile, speculative, and misaligned with Vanguard’s “long-term investment philosophy.”
That changed on December 2, 2025. Vanguard dropped its ban and began allowing its brokerage clients — roughly 50 million people globally, managing more than US$11 trillion in assets — to buy and trade third-party cryptocurrency ETFs and mutual funds via its platform.
Under the revised policy, clients can now get exposure to major assets like Bitcoin, Ether, XRP, and Solana through ETFs — without needing to manage crypto wallets or private keys themselves. Vanguard emphasized, however, that it still will not issue its own crypto funds; it is simply offering regulated third-party products.
---
Why Vanguard changed course
Several factors converged to push Vanguard toward this landmark shift:
Strong and growing demand. Many retail and institutional investors had already fled Vanguard for rivals more open to crypto (e.g. firms offering Bitcoin ETFs directly). Allowing ETFs is a way to stop that outflow.
Mature crypto-ETF infrastructure. After nearly two years of spot Bitcoin ETFs being on the market elsewhere, the funds had “survived periods of volatility” and demonstrated adequate liquidity and regulatory compliance. That stability helped assuage Vanguard’s previous qualms.
Leadership change at Vanguard. In July 2024, Vanguard appointed Salim Ramji (former executive at BlackRock, which helped launch the first successful spot-Bitcoin ETFs) as its CEO. Many analysts see his appointment as a turning point — shifting Vanguard away from ideological opposition toward pragmatic accommodation of crypto clients.
In short: a combination of client pressure, proven ETF resilience, and a leadership willing to embrace change has knocked down what was once the last major TradFi barrier to widespread retail Bitcoin access.
---
Cathie Wood and ARK’s welcome mat to Vanguard clients
Into that void steps Cathie Wood, CEO of ARK Invest, and outspoken advocate of Bitcoin. Wood publicly hailed Vanguard’s decision, calling Bitcoin “a profound technological and monetary innovation.”
Because Vanguard clients can now acquire regulated Bitcoin ETFs with ease (rather than managing wallets or crypto-exchange accounts), Wood sees this as a watershed moment — one that could fundamentally broaden Bitcoin’s investor base.
Moreover, ARK Invest itself remains bullish on the long-term potential of Bitcoin. While Wood recently trimmed her 2030 price target from US$1.5 million to US$1.2 million — citing rising adoption of stablecoins for payments and cash-like uses — she reiterated that Bitcoin’s core value as a “store of value” remains intact.
---
What this means for markets — and for investors
• Broader retail access = bigger inflows
With Vanguard’s 50 million clients now able to invest in crypto ETFs directly from their brokerage accounts, even modest allocations could translate into billions of new dollars flowing into Bitcoin and other major cryptocurrencies.
• Increased legitimacy for crypto in mainstream finance
For many investors — especially those who trust traditional institutions — Vanguard’s move signals that crypto is no longer fringe or purely speculative. Instead, crypto ETFs are becoming recognized as just another asset class, alongside stocks, bonds, and commodities.
• A turning point for financial advisors and retirement planning
Financial advisors who previously avoided recommending crypto (citing institutional gatekeepers like Vanguard) can now include regulated crypto exposure in retirement plans, 401(k)s, IRAs, or brokerage portfolios — without clients needing to directly navigate exchanges or wallets.
• Long-term believers see reinforcing tailwinds
Even after reducing her price target, Cathie Wood’s bullishness remains. ARK’s conviction that Bitcoin will serve as a global store-of-value — akin to “digital gold” — likely gained strength from the new accessibility.
Risks and caveats — not a free pass
That said, several caveats remain:
Vanguard is only allowing regulated, third-party ETFs and mutual funds — not direct crypto holdings. That means clients remain exposed to some counterparty and regulatory risks (though likely lower than holding directly on unregulated exchanges).
The move doesn’t make Bitcoin “safe” — crypto markets remain volatile, and large inflows could intensify price swings (both up and down).
Broader acceptance may lead to faster cycles of hype and drawdowns, especially if macroeconomic conditions or regulatory sentiment shift.
Why this is more than just a crypto headline
The significance of Vanguard’s U-turn and Cathie Wood’s embrace isn’t just about one firm or one CEO. It marks a cultural shift in how traditional finance views crypto. When the industry’s most conservative bastions begin to treat digital assets as legitimate building blocks for diversified portfolios, it suggests a structural integration of crypto into mainstream finance.
For retail investors whether long-time crypto believers or cautious newcomers — that could mean far easier access, broader adoption, and potentially more stable investment infrastructure. For the crypto ecosystem as a whole, the move could signal a maturation phase: less of the “wild west,” more of the “institutional-grade asset class.” $BTC
