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 times in the cryptocurrency market don’t seem to stop the attraction these assets hold for major institutional players. This time, the asset management giant Vanguard announced it will allow crypto product trading 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 the financial firm’s previous rejection of the crypto world. Trading will be activated this Tuesday, representing a further boost for the crypto sector among large portfolios.

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

Additionally, the management probably feels the pressure of falling behind other firms that took the first step into the world of virtual currencies. For example, a certain major rival of Vanguard already has an established presence in the crypto sector with notable success, even amid sharp market corrections.

Vanguard senses it will fall behind in the crypto sector

Since October, the cryptocurrency market capitalization has lost more than $1 billion. This is one of the strongest shocks of recent years in the crypto world and shows no clear signs of reversing in the short term. In this context, Vanguard will allow trading of crypto-based products on its platform.

The math is simple: the exposure of a certain major firm to the sector has brought in $62.5 billion with its Bitcoin ETF. This is a monumental figure achieved in a relatively short period, making corrections like the current one seem secondary from an institutional perspective.

Thus, the narrative of volatility and risk takes a back seat. Maintaining that stance would have deprived Vanguard of maintaining its competitiveness amid the financial system’s evolution 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, said the firm’s director of brokerage and investment, Andrew Kadjeski, in September. At that time, Vanguard gave the first indication of its change in stance toward crypto trading.