Vanguard Reverses Bitcoin ETF Ban as BTC Jumps $5,000 in One Day

 Bitcoin recorded its strongest single-day move since May after one of the world’s largest investment firms reversed its long-standing ban on cryptocurrency exchange-traded funds. The firm, which manages more than $11 trillion in assets globally, has now opened its trading platform to allow customers access to spot Bitcoin ETFs and related crypto funds.

The decision immediately unlocked a wave of new demand from retail and institutional investors who had previously been unable to buy Bitcoin through traditional financial channels. Within hours of the announcement, Bitcoin jumped from the $84,000 range to nearly $92,000, printing a dramatic $5,000 daily candle and reigniting bullish momentum across the broader crypto market.

This rally also pushed total cryptocurrency market capitalization back above $3.1 trillion, confirming renewed investor confidence. Bitcoin’s share of the total market climbed to nearly 59 percent, reinforcing its leadership during times of institutional expansion.

Why the ETF Policy Reversal Matters

For years, many conservative investment platforms blocked access to crypto products, citing volatility concerns and a lack of regulatory clarity. The firm had previously barred investors from purchasing Bitcoin ETFs, even after regulatory approval was granted in early 2024.

Now, with crypto investment products having matured and trading volumes consistently rising, the leadership determined that investor demand and market structure had evolved enough to justify reversing course.

The decision also followed strong performance by existing Bitcoin ETFs, which have attracted tens of billions of dollars in combined inflows since their launch. These ETFs provided a regulated, straightforward way to gain exposure to Bitcoin without the need for wallets, keys, or crypto exchanges  something many investors had long requested.

Another factor driving the change was growing competition from rival firms that had already embraced crypto investment products. As more firms expanded access, maintaining restrictions risked losing capital to competitors.

What This Means for Investors

The reversal gives millions of investors access to Bitcoin through standard brokerage accounts. This provides:

• Easier entry into Bitcoin through regulated funds

• No need to manage digital wallets

• Simplified tax reporting

• Integration with retirement portfolios

Financial advisors are now more likely to recommend small crypto allocations, typically between 1 percent and 4 percent, depending on risk tolerance.

Although the firm will not launch its own crypto funds at this stage, it will continue to allow the trading of third-party Bitcoin and crypto ETFs.

Is Bitcoin Entering a New Phase?

The $5,000 daily candle suggests strong underlying demand, but analysts caution that volatility remains high. While institutional adoption improves stability over time, short-term price swings are still expected.

However, removing barriers to entry for traditional investors is widely seen as a major step toward Bitcoin’s long-term legitimacy as a mainstream asset class.

FAQs

1. What changed with Bitcoin ETFs?

Investors can now trade spot Bitcoin ETFs on one of the largest investment platforms after a long-standing restriction was lifted.

2. Did this really affect Bitcoin’s price?

Yes. Bitcoin surged nearly $5,000 within one trading day following the announcement, marking its strongest move since May.

3. Why did it take so long to allow Bitcoin ETFs?

Earlier concerns focused on volatility and long-term risk. The growing maturity of crypto markets and strong ETF demand led to the policy change.

4. Can new investors buy Bitcoin easily now?

Yes. Access through brokerage accounts has removed many technical barriers that previously discouraged traditional investors.

5. Is Bitcoin now considered safe?

While access has improved, Bitcoin remains volatile and speculative. Investors should always consider risk levels before committing funds.