Key ETF Experts Balchunas and Geraci Divide on Vanguard's Bitcoin Holdout as Bitcoin ETFs Top $100 Billion

A discussion has erupted on social media between leading ETF experts Nate Geraci and Eric Balchunas regarding Vanguard’s stance on crypto ETFs. With assets under management (AUM) exceeding $9 trillion, second only to BlackRock, the company is the gold standard of conservatism and low costs.

In the meantime, the total net assets of spot Bitcoin ETFs have already exceeded $101.45 billion, about 5.25% of $BTC market capitalization. Leading is BlackRock (IBIT) with $53.22 billion.

Can $9 trillion AUM protect Vanguard from the Bitcoin ETF surge?

Nate Geraci, former president of The ETF Store and cofounder of the ETF Institute, considers the situation critical due to a “question of optics.” A huge wave of capital is transferring to the younger generation, which is choosing crypto-friendly brokers. Vanguard’s interface and position appear like the “Dark Ages,” which could lead to a long-term outflow of clients.

Eric Balchunas of Bloomberg Intelligence, however, opposes this view, stating that existing crypto ETFs on the market already solve the problems of 99% of investors. In his opinion, buying an ETF is more advantageous than direct ownership, and Vanguard does not necessarily need to reinvent the wheel, although he acknowledges the importance of image in the battle for the youth demographic.

Any decision Vanguard makes alters the market landscape: the refusal of the crypto sphere long restrained the massive influx of institutional capital, while participation is capable of collapsing average industry fees. That is precisely why every step the company takes is watched more closely than that of any other fund.

Despite public conservatism, under the leadership of new CEO and BlackRock alumnus Salim Ramji, Vanguard has taken important steps. At the end of 2025, the broker opened access to third-party crypto ETFs ($BTC, ETH, SOL, XRP). Furthermore, in fresh research from Vanguard in 2026, the inclusion of 1-4% crypto assets in portfolios for diversification is permitted.