by Coinstrooper Crypto Articles
Quick Take
  • Bitcoin (BTC) price surged more than 6% on Wednesday, pushing toward the $94,000 threshold during the early hours of the Asian session.
  • It comes just hours after Vanguard lifted its long-standing ban on trading Bitcoin ETFs.
  • The Bitcoin price surged above $93,000 on Wednesday, adding over $200 billion to its market capitalization in 36 hours.
  • It put Bitcoin on track for its biggest daily gain since May 2021, as the pioneer crypto approached $91,000, with levered short liquidations surging.

What Happened

While the firm still refuses to launch its own crypto products or support meme coin-linked funds, opening access alone represents one of the most significant institutional shifts of 2025.

“This is why bitcoin pumped… Vanguard just lifted its Bitcoin ETF ban reversal, and a wave of new institutional investors rushed in through BlackRock’s $IBIT ETF. BlackRock’s $IBIT alone hit over $1.8 billion in trading volume within the first two hours,” he wrote.

These rapid inflows suggest that a portion of previously blocked demand, comprising conservative, retirement-oriented investors who could not access Bitcoin ETFs, may have entered the market as soon as the restriction disappeared.

Market Context

Bitcoin (BTC) price surged more than 6% on Wednesday, pushing toward the $94,000 threshold during the early hours of the Asian session. It comes just hours after Vanguard lifted its long-standing ban on trading Bitcoin ETFs.

The sudden rally triggered one of the strongest intraday moves of the quarter, raising new questions about how much conservative capital may now flow into crypto markets.

A Sudden Bitcoin Price Spike as Vanguard Flips Its Crypto Stance

The Bitcoin price surged above $93,000 on Wednesday, adding over $200 billion to its market capitalization in 36 hours.

As BeInCrypto first reported on December 1, Vanguard has ended its years-long crypto ban. Now, it allows trading of Bitcoin, Ether, XRP, Solana, and other regulated crypto ETFs and mutual funds.

“Just fully transferred my retirement account from Vanguard to Fidelity because Vanguard won’t support Bitcoin ETFs, and appears to be manipulating the price of Bitcoin by only allowing people to sell GBTC, not buy,” Harris said.

Vanguard now says Bitcoin and crypto ETFs have been “tested and performed as designed through multiple periods of volatility.”

Balchunas highlighted that BlackRock’s IBIT ETF reached $1 billion in trading volume within the first 30 minutes, with Vanguard saving Bitcoin just before the Christmas holiday, when trading momentum typically begins.

The wave of inflows was not limited to Balchunas’ observations. Analyst Crypto Rover said the price action was no mystery.

Separately, market watcher Vivek Sen reported that Bitcoin ETF volume on Vanguard surpassed $1 billion within the first 30 minutes, describing the surge as “wild.”

Despite the excitement, analysts remain divided on whether Vanguard’s reversal marks a structural shift. When asked whether this is a short-term effect after the ban is lifted, or if it is the beginning of a systemic flow of conservative capital into Bitcoin ETFs, Balchunas urged caution.

Why It Matters

The surge began during the US opening on Tuesday. It put Bitcoin on track for its biggest daily gain since May 2021, as the pioneer crypto approached $91,000, with levered short liquidations surging.

Details

According to ETF analyst Eric Balchunas, this surge is attributed to the “Vanguard Effect,” which occurred on the first day after the firm lifted its ETF ban.

This marks a dramatic departure from its previous position. For years, Vanguard executives have argued that crypto lacks intrinsic value, produces no cash flows, and does not fit long-term retirement strategies.

The firm rejected Bitcoin ETFs after their January 2024 debut and even restricted customer purchases of competing funds. However, from as early as January 2024, analysts predicted the firm would soften its stance.

“Vanguard’s anti-bitcoin ETF stance is totally on brand and would’ve made Bogle proud. That said, I think they will soften in the coming years as they build their advisory business; they’ll need to have access to alternative asset classes,” Balchunas said in a January 13, 2024, post.

Notably, its restrictive stance had compelled many Vanguard customers to redirect their funds to alternative firms. The backlash from clients was swift and decisive, with Vanessa Harris, a former Vanguard client, sharing her experience.

The post has since been taken down.

Nonetheless, sustained customer demand, combined with Bitcoin ETFs becoming one of the fastest-growing product categories in US fund history, has forced a strategic reassessment.

Institutional Momentum Surges Through IBIT and Vanguard

One-Off Burst or the Start of a Larger Trend?