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 does not seem to stop the pull these assets exert among major institutional players. This time, asset management giant Vanguard announced it will allow crypto product trading on its platform. In particular, 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, providing further stimulus for the crypto sector among large portfolios.

Until recently, Vanguard’s position was that digital currencies were too volatile as assets. This, they said, was an obstacle to their involvement in the financial system, as they could create imbalances in serious portfolios. However, it is the 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 asset management platform, 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 cryptocurrency market capitalization has lost over $1 billion. This is one of the strongest shakeups in 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 products based on the crypto world on its platform.

The math is simple: exposure of certain institutional players to the sector has yielded monumental figures in relatively short periods, making corrections like the current one seem like a secondary factor from the 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 evolutionary process of the financial system and its convergence with blockchain.

“Crypto ETFs and mutual funds have been tested during periods of market volatility and performed as intended, 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.