In recent market developments, Vanguard, the world's second-largest asset manager, has decided to allow ETFs and mutual funds that primarily hold cryptocurrencies to be traded on its platform, reversing a long-held position.
Starting Tuesday, Vanguard will allow ETFs and mutual funds that primarily hold select cryptocurrencies, including Bitcoin, Ether, XRP and Solana, to trade on its platform. The move marks a reversal of Vanguard's long-held view that digital assets are too volatile and speculative for serious portfolios, and comes in the wake of the recent cryptocurrency selloff that wiped out more than $1 trillion in market value since early October.
The announcement follows speculation in late September about the move, which would give more than 50 million brokerage clients worth more than $11 trillion access to regulated crypto wrappers.
Although the news did not garner much market attention, it prompted a reaction from Bitwise CEO Hunter Horsley, who was surprised that the crypto market was silent on such a development.
“Signs we're in a bear market? America's second-largest brokerage has changed its policy from selling exclusively to allowing buying of crypto ETFs. And no one is motivated,” Horsley responded in a post by X.
Are there any signs that we are entering a bear market?
America's second-largest securities company has changed its policy from only selling virtual currency ETFs to allowing the purchase of virtual currency ETFs.
And no one is motivated.
Whether people are excited about it now or not, cryptocurrencies are quickly becoming mainstream. https://t.co/CUkQebtk7Q
— Hunter Horsley (@HHorsley) December 1, 2025
Cryptocurrency markets are on shaky ground after weeks of decline that began when around $19 billion in leveraged bets disappeared in early October.
Bitwise's CEO highlighted the increasing acceptance of mainstream cryptocurrencies, a positive result despite recent bearish market sentiment, saying, “Regardless of whether people are excited about it now or not, cryptocurrencies are rapidly entering the mainstream.”
Positive developments expected for Bitcoin
Despite recent price declines, crypto ETFs remain one of the fastest growing segments in US fund history. Vanguard's capitulation is seen as a positive, implying that traditional finance can no longer resist the gravitational pull of digital assets.
The coming week will provide insight into the current state of the economy as policymakers consider the direction of interest rates into 2026. Economic indicators are likely to shape expectations about whether the Federal Reserve will continue its rate-cutting cycle.
In a recent tweet, Bitwise's CEO hinted at something happening with Bitcoin next week, stating that the Bitwise team is “planning something fun with Bitcoin next week.”
