Vanguard Opens Crypto ETF Access to 50 Million Clients as Grayscale Launches First Chainlink ETF

Major Policy Reversal at Vanguard

Investment management giant Vanguard has reversed its longstanding opposition to cryptocurrency exchange-traded funds, opening access to crypto ETFs for its more than 50 million clients ^[1]. The policy shift marks a dramatic departure from the firm's previous stance and could represent a watershed moment for cryptocurrency adoption in traditional finance.

Vanguard had previously ruled out offering crypto ETFs on its platform, citing volatility concerns and the speculative nature of digital assets ^[1]. The company's former CEO Tim Buckley was particularly outspoken against cryptocurrency investments, stating in a May 2024 video that the firm doesn't "believe it belongs, like a Bitcoin ETF belongs in a long-term portfolio of someone saving for their retirement. It's a speculative asset" ^[1].

Buckley announced his departure as CEO in February 2024 and retired at the end of that year ^[1], paving the way for the policy change under new leadership.

Market Observers Predict Significant Impact

Crypto market analysts are speculating that Vanguard's decision could trigger substantial new investment flows into digital assets. Crypto analyst and investor Nilesh Rohilla said he would be surprised if Bitcoin doesn't jump "5% in this news in the next 24 hrs" ^[1].

X user BankXRP characterized the move as "another massive signal that traditional finance is fully stepping into digital assets. The wall of money is lining up" ^[1]. Meanwhile, Vivek Sen, founder of Bitcoin public relations firm Bitgrow Lab, predicted there are "trillions incoming" ^[1].

Grayscale Launches First Chainlink ETF

In a separate development, US regulators have approved Grayscale's conversion of its $30 million Chainlink Trust into an exchange-traded fund ^[2]. The new fund, set to list on NYSE Arca under the ticker GLNK this week, will become the first spot Chainlink ETF available to American investors ^[2].

The structure is designed to give traditional investors exposure to LINK tokens without requiring them to hold the cryptocurrency directly ^[2]. The ETF may also include staking for part of its holdings, allowing the fund to earn rewards while using a cash-based creation and redemption model similar to other crypto ETFs ^[2].

Mixed Market Reaction to Chainlink News

Despite the regulatory approval, Chainlink's native token LINK dropped 7% in the 24 hours following the announcement, trading at $12.17 on a 122% increase in daily trading volume to $609 million ^[2]. Market observers suggest traders are "selling the news," indicating that expectations for the ETF were already priced in and short-term speculators are locking in profits ^[2].

The approval comes after months of filings and signals growing willingness from regulators to accommodate altcoin ETFs beyond Bitcoin and Ethereum ^[2]. If the Chainlink ETF attracts meaningful inflows after launch, it could improve liquidity and deepen market depth for LINK over the coming months ^[2].

Broader Implications for Crypto Adoption

The convergence of Vanguard's policy reversal and the launch of new altcoin ETFs suggests that cryptocurrency is gaining broader acceptance within traditional financial institutions. As more established investment firms offer crypto products to their retail and institutional clients, the digital asset market may see increased legitimacy and reduced volatility over time.

These developments come as large financial players including UBS and regional banks in Turkey are testing or integrating Chainlink standards for tokenized securities ^[2], further reinforcing cryptocurrency infrastructure's role in the evolution of traditional finance.