$10 Trillion Asset Manager Vanguard Unexpectedly Backtracks on Crypto ETFs

Vanguard, a major asset management firm, is reportedly preparing to allow access to crypto exchange-traded funds (ETFs) on its platform. The firm currently has over $10 trillion in assets under management, demonstrating its enormous size.

Vanguard Push on Crypto ETFs

According to reports from Crypto in America, Vanguard is seeking to offer its U.S. brokerage clients access to third-party crypto ETFs.

This move marks a shift from its previous stance, which restricted client access to crypto-related investment products. Vanguard previously expressed concerns about the speculative nature of crypto and misalignment with its long-term investment philosophy.

However, sources familiar with the latest Vanguard move confirmed that the firm has begun the groundwork for the crypto ETFs.

They said the asset manager recently held external discussions in response to strong client demand for digital assets and a favorable regulatory environment.

Still, Vanguard has no plans to develop its own crypto ETFs just yet, like BlackRock. Rather, it is exploring allowing brokerage customers access to selected third-party crypto ETFs.

However, the $10 trillion asset manager is yet to release or confirm a specific timeline or products.

The latest Vanguard move coincides with growing investor interest in crypto. It also follows similar crypto ETF expansions by other traditional firms.

For instance,  Morgan Stanley recently partnered with digital asset infrastructure provider Zerohash to offer crypto trading services. The partnership will allow Morgan Stanley customers direct access to trade cryptocurrencies, beginning in the first half of 2026.

What the Vanguard Crypto ETFs Means for Web3

As regards Vanguard, its eventual embrace of the crypto ETFs holds implications for the digital asset industry.

Firstly, it could offer a massive influx of new capital, boosting liquidity and potentially driving up prices of top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

Additionally, access through a trusted brokerage like Vanguard would mean fresh legitimacy for digital assets. This could encourage other traditional firms to follow the same path, further integrating crypto into mainstream finance.

Furthermore, Vanguard ETF adoption could push crypto allocations into model portfolios and advisory accounts at scale. The crypto industry may also see more regulatory clarity when a powerhouse like Vanguard gets involved.

Meanwhile, it is important to note that the immediate impact may be limited. This is because Vanguard is not launching its own crypto products, but only considering third-party ETFs.

Bitcoin and Ethereum Price to Rebound?

As of this writing, the crypto market is experiencing volatility, affecting BTC and ETH prices negatively.

Over the past 24 hours, the price of BTC decreased by 1.85% to $109,417. Likewise, the ETH price dropped 0.5% to $3,938.

In addition to the decreasing prices, BTC supply on exchanges have plunged drastically over the past seven days, suggesting a shifting market sentiment.

Several factors, including persistent ETF outflows, macroeconomic risks, options expiry, and global war escalations, contributed to the declining crypto prices.

Large investors, often referred to as whales, also added to the downward pressure with their recent large Bitcoin and Ethereum sales.

Nevertheless, a quick rebound is still possible for both Bitcoin and Ethereum, especially amid soaring institutional interest.

Backtracking, BTC and ETH experienced sharp rebound after top asset managers in the U.S launched spot ETFs. Thus, the leading cryptocurrencies will likely follow an upward trajectory if Vanguard succeeds in its crypto ETFs venture.

Moreover, technical analysts have highlighted that important BTC support remained at $110,000-$113,000. Buyers have repeatedly intervened to protect the level each time the price fell to the bottom limit.

The frequent sweeps cleared the market and have created a consolidated basis for a possible reversal towards $120,000.