[DigitalToday reporter Jinju Hong] Vanguard, the world’s No. 2 asset manager, allowed cryptocurrency ETF trading on its brokerage platform on Dec. 2. The industry assessed it as a signal flare for digital assets entering the mainstream. Vanguard, which has maintained a conservative stance, opened a path for retail clients to invest in cryptocurrency through regulated ETFs after about 2 years of cautious review.

Expectations grew that digital assets had moved closer to mainstream finance as investors could access them through existing broker accounts without opening an exchange account or arranging self-custody. But the market’s reaction differed from those expectations, with bitcoin and XRP plunging.

On Feb. 25 local time, blockchain outlet The Crypto Basic reported that bitcoin rose about 6 percent on the day Vanguard allowed access to cryptocurrency ETFs, responding positively as it reflected the favorable news. It later turned lower. It has corrected about 30 percent from a peak of $92,330 to around $64,900 recently.

XRP is in a more serious situation. XRP at one point climbed to $2.18 on news of Vanguard’s service launch, but later fell about 37 percent to $1.36. Major altcoins such as Ethereum and Solana have also posted declines of around 40 percent, going through the steepest correction zone of this cycle.

Nate Geraci (네이트 게라시), head of NovaDius Wealth, described it as "cruel timing". Prices turned weak right after institutional access expanded, highlighting a stark gap between expectations and reality. The door to investing opened after a long wait, but analysis said the entry point coincided with a short-term peak.

Still, the prevailing interpretation in the market is that the decline reflects macroeconomic variables and the market’s rotation cycle rather than Vanguard’s platform opening itself. It was attributed to pressures on cryptocurrencies as global liquidity conditions, uncertainty over the interest rate path and broader corrections across risk assets combined. In other words, Vanguard’s decision is structurally a positive change, but it is hard to see it as a direct factor determining short-term price direction.

Even so, the significance is clear. The fact that a large asset manager officially allowed clients access to cryptocurrency ETFs itself symbolizes progress in mainstream adoption. Prices are showing short-term volatility, but some also say broader access is part of the process of bitcoin and XRP becoming part of traditional portfolios.

Ultimately, the case shows that expanded institutional participation does not immediately guarantee a bull market, while it is also hard to deny the broader trend that digital assets are increasingly moving into the existing financial system.