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How to Buy Crypto with Vanguard

How to Buy Crypto with Vanguard

Dylan Matthews
Fact Checked
Feb 6, 2023

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.

Table of Contents

Best Vanguard Alternative

Platform Highlights

  • 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.
Uphold - Vanguard Alternative
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Audited Proof of Reserves
Audited Proof of Reserves

Can I buy Crypto or Bitcoin with Vanguard?

Vanguard does not directly offer the option to buy or trade cryptocurrency such as Bitcoin. Vanguard offers traditional investment options such as stocks, bonds, and mutual funds, but does not currently offer any direct investment options in cryptocurrencies. Investors seeking exposure to the crypto market may consider investing in companies with a significant exposure to the crypto industry or exchange-traded funds (ETFs) that track the performance of the cryptocurrency market.

Some popular examples include the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE) and the bitwise 10 Crypto Index Fund (BITW). However, it is important to note that this method is expensive and typically underperforms the underlying coins like Bitcoin (BTC) and Ethereum (ETH) because of high management fees.

Vanguard Crypto
Buy, sell and trade Crypto ETFs with the Vanguard App.

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:

  1. Sign Up: Create an account on Uphold and complete your verification (personal or company).
  2. Connect Account: Select the currency you want deposit on the Uphold Platform (USD + 30 more).
  3. Deposit Funds: Connect any US bank account or Debit/Credit Card to quickly deposit your selected fiat currency.
  4. Buy Crypto: The final step is to find the cryptocurrency you want to buy and execute your trade.
Buy Crypto Assets on a Vanguard Alternative.

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 is an American investment management company that offers a variety of mutual funds, ETFs, and other financial products to its clients. Vanguard is one of the largest asset managers in the world, with over $4 trillion in assets under management as of December 2019. The company is headquartered in Malvern, Pennsylvania.

Vanguard Login

The company's products are available to investors in the United States, Canada, and a number of other countries. Vanguard offers a variety of investment strategies, including index funds, actively managed funds, and exchange-traded funds (ETFs). Vanguard is known for its low-cost investing options, as well as its customer service and innovative technology.

Vanguard has a wide array of products that cater to different types of investors. For example, Vanguard offers index funds that track major market benchmarks, such as the S&P 500 Index and the Dow Jones Industrial Average. The company also offers actively managed funds, which are overseen by a team of professional portfolio managers.

Final Thoughts

Vanguard does not currently offer direct access to cryptocurrencies, but investors can get exposure through index funds or ETFs. For those looking for an alternative that offers real crypto assets with fast and cheap USD deposits, Uphold is a great option. It is FinCEN-licensed, FCA-regulated and has audited proof-of-reserves for customer funds. Plus, it offers multiple asset classes, including stocks, ETFs and metals in addition to cryptocurrencies.

Dylan Matthews

I am the Founder & CEO of Buy Bitcoin Bank and was previously an engineer for a Prop trading firm in Crypto.

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