First time in history! Vanguard opens cryptocurrency ETF trading to customers Bitcoin once topped $92,000

The Zhitong Finance App learned that Vanguard first allowed customers to buy cryptocurrency ETFs managed by a third party on its brokerage platform on Tuesday, coinciding with the recent rebound in the digital asset market, which had suffered a severe setback. The move was first reported by the media and later confirmed by the company. Vanguard said that customers can now buy many cryptocurrency ETFs and mutual funds such as BlackRock's iShares Bitcoin Trust (IBIT.US) through its platform.

In addition to Bitcoin, ETFs linked to Ethereum and Ripple are also open for trading at the same time. The media quoted the head of Vanguard's brokerage and investment business as saying that these cryptocurrency ETFs and mutual funds “meet the original design intent” during the market fluctuation phase and can operate normally in a highly volatile environment.

Despite opening up crypto products to customers this time, Vanguard stressed that the company currently has no plans to launch its own cryptocurrency products; its goal is only to provide investors with more open trading channels, so that customers can freely allocate their preferred assets. Hunter Rogers, co-founder of TeraHash's Bitcoin Yield Protocol, commented that the move “may accelerate the further legalization of cryptocurrencies in diversified portfolios,” but also pointed out that Vanguard has criticized crypto assets in the past as “speculative and unsuitable for long-term allocation.” Rogers believes that the rapid growth in customer demand is the main reason Vanguard chose to take this step.

On Tuesday, Bitcoin once surged more than 7% to break through $92,000, then fell back to around $91,000. Despite this, Bitcoin is still down about 28% from its all-time high in October. The crypto market has fluctuated drastically this year, and large amounts of new capital continued to pour in as Bitcoin rushed to its all-time high of $126,000 on October 6. As a result, crypto ETFs also attracted countless amounts of money, but there was also a significant wave of redemptions.

Jim Ferraioli, head of crypto research at the Carson Wealth Management Investment Research Center, pointed out that since the US spot Bitcoin ETF was listed in January 2024, its average cost area was around $84,000. Bitcoin rebounded after approaching this critical level at the end of November, showing that the region has strong support, but if it falls below $84,000 in the future, it may trigger a more sustained sell-off.

Despite Vanguard's inclusion of cryptocurrency ETFs in its range of tradable products, Rogers emphasized that this should not be viewed as an official endorsement of the long-term value of a crypto asset. “Vanguard has not launched its own crypto fund and continues to rule out volatile 'memes, 'so this move is more like a defensive gesture to retain customers,” he said.

Meanwhile, US stocks rose at the same time on Tuesday, driven by improved market sentiment. The S&P 500 Index rose 0.25%, the Dow Jones Industrial Average rose 0.39%, and the Nasdaq Composite Index rose 0.59%, continuing the rebound after a weak trend in early December.