Vanguard, one of the biggest investment companies in the world, is making a major change. For years, the firm refused to offer digital asset products to its customers. Now, it is reversing that position and has reportedly begun allowing trading of digital asset exchange-traded funds (ETFs) and mutual funds on its brokerage platform.

As of yesterday, more than 50 million Vanguard clients are able to invest in funds tied to bitcoin and other approved digital assets.

For a long time, Vanguard believed bitcoin was too risky and unstable for long-term investors. While other major firms, like BlackRock and Fidelity, quickly embraced bitcoin products, Vanguard held back. But growing customer demand and changes in the broader market have pushed the company to reconsider its stance.

Many in the Bitcoin community see this as a big win for the scarce digital asset.

Vanguard says it will now support most digital asset ETFs and mutual funds that meet U.S. regulatory standards. These products will be treated similarly to other non-core assets it already offers, such as gold. However, the company will still block access to funds tied to memecoins or to products that don’t meet SEC requirements.

Andrew Kadjeski, head of brokerage and investments at Vanguard, said the time was right for the shift. “Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” he explained.

The popularity of Bitcoin ETFs has grown rapidly. When the first spot Bitcoin ETFs launched in January 2024, they quickly attracted billions of dollars. Even as bitcoin prices fell later, demand for these regulated investment products stayed strong. Some Bitcoin ETFs have grown to tens of billions in assets. BlackRock’s iShares Bitcoin Trust (IBIT) peaked near $100 billion earlier this year and still manages around $70 billion.

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Vanguard watched from the sidelines as these funds expanded. Spot Bitcoin ETFs grew from about $25 billion in assets early in 2024 to more than $120 billion within two years. Many investors began questioning why Vanguard (one of the largest and most respected financial firms) refused to offer access when the rest of the industry was moving forward.

The company’s new CEO, Salim Ramji, may have influenced the change. Ramji, who took over in 2024, previously worked at BlackRock and supported the development of bitcoin ETFs.

His hiring was unusual for Vanguard, which typically promotes executives from within the company. Some industry watchers saw his arrival as a sign that Vanguard might rethink its digital asset policies. Bloomberg ETF analyst Eric Balchunas even called the hire “semi-shocking,” back in May, noting Ramji’s deep experience with digital-asset-related ETF filings at BlackRock.