Vanguard will allow crypto trading on its platform through mutual funds and ETFs

Source: CritpoTendencia Original Title: Vanguard will allow crypto trading on its platform through mutual funds and ETFs Original Link: The tough time in the cryptocurrency market doesn’t seem to diminish the attraction these assets exert among major institutional players. This time, asset management giant Vanguard announced it will allow trading of crypto products on its platform. Specifically, exchange-traded funds (ETF) and mutual funds related to Bitcoin, Ethereum, and other coins.

This is a highly significant step that leaves behind this financial firm’s previous rejection policy toward the cryptocurrency world. Trading will be activated this Tuesday, which represents a major boost for the crypto sector among large portfolios.

Until recently, Vanguard’s stance was that digital currencies were too volatile as assets. This, they argued, was an obstacle for their involvement in the financial system, as it could create imbalances in serious portfolios. However, it is the demand from large and medium portfolios that generated this change of opinion within the firm.

Moreover, the board probably feels the pressure of falling behind other firms that took the first step in the world of virtual currencies. For example, BlackRock, Vanguard’s main rival, already has an established presence in the crypto sector with notable success, even amid sharp market corrections.

Vanguard senses it will be left behind in the crypto sector

Since October, the market capitalization of cryptocurrencies has lost over $1 trillion. This is one of the strongest shake-ups in recent years in the crypto world, showing no clear signs of reversing in the short term. In this context, Vanguard will allow trading of products based on the crypto world on its platform.

The calculations are simple: BlackRock’s exposure to the sector has brought in $62.5 billion with its IBIT ETF alone. This is a monumental figure achieved in a relatively short period, making corrections like the current one a secondary factor from the institutional perspective.

Thus, the volatility and risk narrative moves to the background. Maintaining that stance would have deprived Vanguard of preserving its competitiveness amid the financial system’s evolutionary process and its convergence with blockchain.

Crypto ETFs and mutual funds have been tested during periods of market volatility and have performed as expected, while maintaining liquidity, pointed out the firm’s head of brokerage and investment, Andrew Kadjeski, in September. At that time, Vanguard gave the first indication of its change in stance toward crypto trading.