Vanguard, the most formidable holdout in asset management, is drafting plans for a strategic retreat. The $10 trillion giant is reportedly preparing to grant its brokerage clients access to crypto ETFs, signaling a profound shift in institutional acceptance.

On Sept. 26, crypto journalist Eleanor Terrett reported that Vanguard has initiated internal groundwork and external discussions to facilitate access to select third-party crypto ETFs for its brokerage clients.

According to a source familiar with the plans, the firm is acting in response to mounting client demand and a notably shifting regulatory landscape. The source emphasized that Vanguard is being “very methodical” in its approach, acknowledging the market dynamics that have evolved since the landmark ETF approvals in 2024.

Crucially, the report indicates this move does not include plans for Vanguard to launch its own proprietary crypto products.

From rejection to reconsideration

This potential pivot marks a stark departure from Vanguard’s firm stance in January 2024, when the firm blocked client access to the newly approved spot Bitcoin ETFs. At the time, the asset manager stated the products conflicted with its offering focused on traditional asset classes like equities, bonds, and cash, which it considered the essential building blocks of a long-term portfolio. It deemed Bitcoin’s volatility incompatible with its investment philosophy.

The road to this reversal, however, has been paved with telling clues. As Bloomberg Senior ETF analyst Eric Balchunas noted, the appointment of Salim Ramji as CEO in mid-2024 was a critical signal.