Crypto markets continued to show strong momentum a day after Vanguard, the world’s second-largest asset manager, began allowing trading in cryptocurrency ETFs, including Bitcoin, Ethereum, Solana, and XRP.
Vanguard, which manages over $11 trillion in assets for more than 50 million clients, had long avoided crypto, saying it was too risky for long-term portfolios. But with crypto ETFs growing in popularity this past year, the firm has reversed course and given investors access.
On Tuesday, Bitcoin (BTC) jumped about 6% after the launch. Today, the world’s largest cryptocurrency is trading at $94,000, up 3% in the past 24 hours. Meanwhile, BTC, SOL, and XRP ETFs had inflows of $58.5 million, $46 million, and $68 million, respectively, on Dec. 2. However, ETH ETFs recorded $9 million in outflows, according to SoSoValue data.
“THE VANGUARD EFFECT: Bitcoin jumps 6% right around US open on first day after bitcoin ETF ban lifted. Coincidence? I think not,” wrote Bloomberg’s Eric Balchunas on X. “Also $1b in IBIT volume in first 30min of trading. I knew those Vanguardians had a little degen in them..”
Experts say Vanguard’s move signals a significant shift in how conservative investors are approaching crypto. Anthony Georgiades, General Partner at Innovating Capital, said even small investments from long-term, passive investors can create steady demand and more stable markets.
He added that the move also makes it easier for new spot ETFs to launch, thanks to proven operational systems, custody solutions, and liquidity frameworks in place.
“It also makes it easier for more conservative capital pools, such as retirement accounts, advisors, and institutions that can only allocate through regulated products, to justify adding small crypto exposures,” Georgiades explained. “Even modest allocations from these channels represent large, steady sources of demand.”
Gracy Chen, CEO of Bitget, pointed out that when a firm overseeing trillions in assets makes this kind of pivot, it reshapes industry perception overnight and paves the way for other major asset managers to accelerate their own digital asset strategies.
“For the crypto industry, this development is a boon for the industry, paving the way for innovative financial products and greater global accessibility,” Chen added.
The decision comes after years of growing demand from both retail and institutional investors for access to cryptocurrency ETFs. This demand has already prompted the launch of ETFs for smaller cryptocurrencies, including Solana and XRP.
