The most frightening holdout in asset management, Vanguard is drafting a strategic retreat plan. The $10 trillion giant reportedly prepares to grant brokerage clients access to crypto ETFs, indicating a major change in acceptance of the system.
summary
- Vanguard is reportedly preparing broker clients to access third-party crypto ETFs, reversing the 2024 ban.
- This change follows the impact of increased client demand, regulatory changes and new CEO Salimramji.
- The company has no plans to launch its own cryptographic product yet.
On September 26th, Crypto journalist Eleanor Terrett reported that Vanguard had launched internal fundamentals and external discussions to promote access to third-party crypto ETFs of choice for brokerage clients.
According to sources familiar with the plan, the company is acting in response to increased client demand and changes in the regulatory environment, particularly the company. Sources emphasized that Vanguard is “very systematic” in its approach, acknowledging the market dynamics that have evolved since the 2024 Landmark ETF approval.
Importantly, the report shows that the move does not include plans for Vanguard to launch its own Crypto product.
From rejection to reconsideration
This potential pivot marks a tough starting point from Vanguard’s company’s stance in January 2024, when it blocked client access to the newly approved spot Bitcoin ETF. At the time, the asset manager said the product was inconsistent with products focusing on traditional asset classes such as stocks, bonds and cash. We believe that Bitcoin’s volatility is incompatible with investment philosophy.
However, this path to a reversal is paved with clues. As Bloomberg Senior ETF Analyst Eric Barkunas pointed out, the appointment of Salim Ramji as CEO in mid-2024 was a significant signal.
Ramji, who personally oversaw the launch of BlackRock’s Ishares Bitcoin Trust (IBIT), brought an insider’s understanding of the digital asset market to Vanguard’s top role. Balchunas previously speculated that Ramji’s leadership could lead to a reversal of the ETF ban within a year or two.
This context makes current development seem like a sudden faceless look and looks like an intentional CEO-led strategy implementation. What further complicates Vanguard’s public skepticism is the quiet rise towards becoming the biggest shareholder of the strategy, widely regarded as a publicly available Bitcoin proxy.
According to Bloomberg, through various funds, Vanguard has accumulated 8% stake in the company. This substantial investment exists in contrast to its official statements, suggesting a nuanced approach to being exposed to the digital asset ecosystem through traditional equity channels.