XRP and Bitcoin have corrected by double digits since Vanguard allowed its clients access to crypto ETFs. Coincidence or deeper meaning?
When Vanguard opened its brokerage platform to spot crypto ETFs on December 2, industry leaders lauded the event as a milestone for mainstream adoption. After nearly two years of hesitation, the second-largest asset manager in the world was finally allowing everyday clients to gain direct exposure to digital assets through regulated funds.
But the market has not responded favorably since then.
Key Points
- Vanguard opened its brokerage platform to spot crypto ETFs on December 2, with industry leaders lauding the event as a milestone for mainstream adoption.
- Since that rollout, Bitcoin has slipped roughly 30%, while XRP and several other large coins, such as Ethereum and Solana, have dropped closer to 40%.
- The bigger picture is that Vanguard’s decision didn’t cause the downturn; prices simply reflected macroeconomic pressures and cyclical performances.
- Looking forward, the presence of major brokerages offering crypto exposure remains a step in the right direction.
A Rough Welcome to Crypto ETFs for Vanguard Clients
Since Vanguard developments, prices have fallen sharply. Bitcoin has slipped roughly 30%, while XRP and several other large coins, such as Ethereum and Solana, have dropped closer to 40%. Instead of the bullish touch many teased the Vanguard crypto ETF entrance to bring, it has lined up with one of the harshest pullbacks of the current cycle.
NovaDius Wealth president Nate Geraci highlighted this in his recent X post, describing it as “brutal timing.” He suggested that the irony of access expanding just as prices weakened was a function of the poor timing of entry, despite waiting two whole years.
Bitcoin rose nearly 6% on the day Vanguard opened access to crypto ETFs through its brokerage platform, reflecting this positive development. However, from the high of $92,330 that day, it has collapsed approximately 30% to its current price of $64,900.
XRP has faced a heavier price drop. It also reacted bullishly to the event, rising 6% to $2.18. However, it has dropped 37% from the high to its current price of $1.36. Notably, blossoming network activity didn’t shield the token from partaking in the broader sell-off.
Positives for Bitcoin and XRP Regardless
For many Vanguard clients, this was their first simple way to gain exposure to crypto without dealing with exchanges or self-custody. Buying through a familiar brokerage account removed technical barriers and made digital assets feel closer to stocks or funds. However, they have so far been met with immediate declines.
Nonetheless, the bigger picture is that Vanguard’s decision didn’t cause the downturn. The price weakness reflects macroeconomic pressures and cyclical performances. As such, the coincidence highlights how unpredictable timing can be even for institutional players.
Looking forward, the presence of major brokerages offering crypto exposure remains a step in the right direction. Prices may fluctuate, but easier access means Bitcoin and XRP are becoming part of traditional portfolios.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.