In a major policy change, Vanguard, the Malvern, Pennsylvania-headquartered asset manager, is set to greenlight cryptocurrency exchange-traded funds (ETFs) on its brokerage platform, according to a recent report. The move is likely to boost the institutional acceptance of major cryptocurrencies.
Warming up to crypto
Despite BlackRock, the leading asset manager, striking gold with its highly successful Bitcoin ETF (IBIT), Vanguard chose to remain on the sidelines of the crypto boom, stubbornly ignoring the newfangled asset class. In fact, it banned crypto ETFs from its platform. Analyst Eric Balchunas previously opined that such an aggressively anti-crypto stance was due to Vanguard's general aversion toward commodities.
Some assumed that Vanguard might change its stance after Salim Ramji, who helped to oversee the launch of IBIT, was appointed as the asset manager's new CEO. However, this did not happen.
That said, as reported by U.Today, Vanguard is the top corporate owner of Michael Saylor's Strategy, which, of course, is known as Bitcoin's leading corporate holder.
Now, if the recent report is accurate, the asset management giant is finally embracing crypto now that it is increasingly becoming part of mainstream finance.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team