Vanguard tops $1tn AUM outside US, cuts UK fees and eyes global expansion as crypto pressure mounts
Vanguard has surpassed $1 trillion in assets under management (AUM) outside the United States and now serves 17 million international clients, with a target to grow to 40 million and double non-US assets within five years. The firm manages over $12 trillion globally, ranking it the world’s second-largest asset manager. New CEO Salim Ramji and international head Chris McIsaac said there are significant opportunities overseas as governments (including the UK) push savers toward market investing. Vanguard cut fees on its £52 billion LifeStrategy funds and reallocated holdings away from UK assets into more global stocks in response to client demand. The firm’s average fee in Europe is 14 basis points versus an industry average of 65 bps. Historically averse to crypto, Vanguard is feeling renewed pressure after a surge in crypto ETF launches (including strong flows into Bitcoin and Ethereum ETFs and successful launches like a Solana staking ETF). While Vanguard has not launched crypto products yet, rising retail demand and competitive ETF growth are forcing the firm to reassess its stance. Key figures: $1tn non-US AUM milestone, $12tn global AUM, 17 million current international clients (target 40 million by 2031), £52bn LifeStrategy funds, European average fee 14 bps. Traders should note Vanguard’s fee cuts and global reallocation may accelerate passive inflows into international equities, while a potential shift toward accepting crypto exposure by a major passive manager could increase institutional demand and liquidity for crypto ETFs and underlying assets.
Neutral
The news is neutral overall for crypto markets. Positive elements: Vanguard’s global expansion, fee cuts and reallocation to international stocks will likely increase passive fund flows into equities and ETFs, improving liquidity and potentially lifting risk assets. The mention that Vanguard is under pressure to reconsider its anti-crypto stance is constructive — if the firm moves toward offering or supporting crypto ETFs, that would be bullish for crypto liquidity and institutional demand. Negative/limiting elements: Vanguard has not yet launched crypto products and historically resisted crypto exposure; there is no concrete product or timeline announced. That uncertainty tempers immediate market impact. Short-term: likely limited effect on crypto prices — mentions may spur speculative positioning but no direct inflows until Vanguard acts. Equity markets and passive ETF flows (non-crypto) are more directly affected, possibly benefiting international equity ETFs. Long-term: if Vanguard pivots and introduces crypto products or eases policies, it could be materially bullish — bringing large, low-cost passive flows and more conservative retail/institutional exposure to crypto. Past parallels: BlackRock’s and other incumbent managers’ entrance into Bitcoin ETFs in 2023–2024 correlated with large inflows and price support for BTC/ETH; a similar move by Vanguard would likely mirror those effects. Traders should watch definitive product announcements, regulatory filings, and changes in Vanguard’s fund prospectuses as triggers for market-moving inflows.