Summary: Vanguard does not currently offer any direct investment products for cryptocurrencies. That said, the firm does have some crypto-related stocks, mutual funds and ETFs that investors can buy for indirect exposure to the digital asset market. Some examples include the Grayscale Bitcoin Trust (GBTC), Coinbase (COIN) or the Bitwise 10 Index Fund (BITW).
We recommend that investors avoid indirect exposure to crypto through these vehicles because it's not always clear how the underlying assets are being invested in, or what fees and other costs may be involved. Instead, we suggest using a FinCEN-licensed crypto exchange that offers 250+ real crypto assets like Uphold that is available to US investors.
- Fast and cheap USD deposits via ACH Transfer, Debit Card or Credit Card to trade 200+ Cryptos.
- Regulated and Licensed by the FCA, FinCEN and has audited Proof-of-Reserves for customer funds.
- Offers multiple asset classes including Crypto (and crypto staking), Stocks, ETFs, Metals and more.
Can I Buy Crypto with Vanguard?
Vanguard currently does not offer direct options for buying or trading cryptocurrencies, such as Bitcoin. They provide traditional investment vehicles like stocks, bonds, and mutual funds, but lack specific cryptocurrency investment opportunities. Investors interested in the crypto market can consider investing in firms significantly involved in the crypto sector or exchange-traded funds (ETFs) that follow the cryptocurrency market's performance.
Notable examples include Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Bitwise 10 Crypto Index Fund (BITW). However, be aware that this approach can be costly and often underperforms the underlying assets, such as Bitcoin (BTC) and Ethereum (ETH), due to high management fees.
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Best Vanguard Crypto ETF
Based on our research, the best overall Crypto ETF available through your Vanguard login is the Bitwise 10 Crypto Index Fund (non-OTC Trust). This fund gives investors access to the top 10 cryptocurrencies by market capitalization (excluding stablecoins), enabling an efficient way to gain diversified exposure to the asset class.
The current weightings of the Bitwise 10 ETF on Vanguard are:
- Bitcoin (BTC) - 61.7%
- Ethereum (ETH) - 28.4%
- Cardano (ADA) - 2.6%
- Solana (SOL) - 1.9%
- Polkadot (DOT) - 1.3%
- Polygon (MATIC) - 1.1%
- Avalanche (AVAX) - 0.8%
- Cosmos (ATOM) - 0.8%
- Litecoin (LTC) - 0.7%
- Chainlink (LINK) - 0.6%
How to Buy Crypto with a Vanguard Alternative
As outlined above, we recommend using a FinCEN-licensed and regulated cryptocurrency exchange to buy and sell digital assets. Our top pick for investors in the USA is Uphold because they offer zero fees to buy & stake over 250 cryptocurrencies on their licensed trading platform. They are a significantly more competitive alternative to Coinbase & eToro, which charge higher fees and wider spreads.
You can follow this simple step-by-step guide to get started:
- Sign Up: Create an account on Uphold and complete your verification (personal or company).
- Connect Account: Select the currency you want deposit on the Uphold Platform (USD + 30 more).
- Deposit Funds: Connect any US bank account or Debit/Credit Card to quickly deposit your selected fiat currency.
- Buy Crypto: The final step is to find the cryptocurrency you want to buy and execute your trade.
Will Vanguard offer Cryptocurrencies or Bitcoin?
This is a difficult question to answer, as Vanguard has not been forthcoming about their plans for offering cryptocurrencies. It seems likely that they will eventually offer some form of cryptocurrency investment product, but it is unclear when this might happen. In the meantime, investors interested in cryptocurrencies can purchase them through other means.
What is Vanguard?
Vanguard, a prominent American investment management firm, provides a diverse range of mutual funds, ETFs, and other financial products to its clientele. As one of the world's largest asset managers, Vanguard boasts over $4 trillion in assets under management as of December 2019 and is based in Malvern, Pennsylvania.
Catering to investors in the United States, Canada, and several other countries, Vanguard presents an assortment of investment strategies, including index funds, actively managed funds, and exchange-traded funds (ETFs). The firm is recognized for its cost-effective investment options, exceptional customer service, and cutting-edge technology.
Vanguard tailors its product offerings to suit various investor profiles. For instance, the company provides index funds that track major market benchmarks like the S&P 500 Index and the Dow Jones Industrial Average. Additionally, Vanguard offers actively managed funds supervised by teams of expert portfolio managers.
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Final Thoughts
In conclusion, Vanguard doesn't offer direct cryptocurrency investments but provides indirect exposure through crypto-related stocks and ETFs. However, these options may be less transparent and more costly. Instead, consider using a FinCEN-licensed exchange like Uphold for more competitive fees and access to a broader range of cryptocurrencies. Vanguard's future plans for cryptocurrency investment products remain uncertain; thus, investors should explore alternatives to enter the digital currency market.
Dylan Matthews is the Co-Founder and head of operations at Buy Bitcoin Bank, with a background in engineering and experience as a Prop Trader. He has leveraged his knowledge and skills to build and scale the platform, providing users with a seamless experience for buying and selling cryptocurrency.
