Shared course of the Big Three: How crypto brought together BlackRock, Vanguard, and State Street

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Crypto aligns BlackRock, Vanguard, and State Street

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Anastasiia Chabaniuk

02.12.2025

Shared course of the Big Three: How crypto brought together BlackRock, Vanguard, and State Street — Crypto aligns BlackRock, Vanguard, and State Street

Three of the largest U.S. asset managers — BlackRock, State Street, and Vanguard — are, for the first time, showing a shared stance on digital assets. For a long time, they resisted cryptocurrencies, but they have ultimately softened their position.

The Big Three and their market influence

Who wields the most power in the world of passive investing? The answer comes down to the Big Three — BlackRock, Vanguard, and State Street. Together, they oversee more than $20 trillion in assets, hold major stakes in key U.S. corporations, and shape capital flows across the S&P 500 and Nasdaq through index investing.

That’s why any shift in these firms’ strategy instantly becomes a market benchmark. If they endorse a new asset class, pension funds, institutional investors, and millions of retail clients gain access to it almost automatically. If they refuse to support it, the asset can remain on the sidelines for years — even when demand is strong.

For many years, cryptocurrencies were one area where the Big Three did not align. After 2020, institutions began looking for regulated ways to enter digital assets, but the trio lacked a unified approach. BlackRock and State Street cautiously tested blockchain-based infrastructure and built institutional services, while Vanguard remained the most hardline opponent, refusing to allow crypto products even in the form of ETFs.

Against this backdrop, any change in their posture has systemic consequences. When the Big Three converge on a single approach, it signals that an asset class is moving from “experimental” to a standard component of the global financial infrastructure.

BlackRock and State Street’s bet on digital assets

BlackRock was the first of the Big Three to make a structured, sustained move into crypto. That happened in 2022–2023, as the firm saw rising institutional demand for Bitcoin. The defining milestone was the launch of the spot Bitcoin ETF iShares Bitcoin Trust in January 2024. It quickly became the fastest-growing ETF in history and attracted tens of billions of dollars. In effect, BlackRock normalized Bitcoin for traditional investors and cemented its role as a leading gateway for institutional crypto exposure. After that, the company shifted toward tokenization: funds like BUIDL showcased how traditional assets can operate on-chain in a regulated environment.

State Street took a different route. It did not enter the public market with high-profile crypto products, but it had been building infrastructure since 2019–2020. In 2021, it launched State Street Digital, focused on custody services for digital assets and participation in tokenized securities initiatives. In 2024, it signed a partnership with Switzerland-based Taurus, and in 2025, State Street became the first third-party custodian on J.P. Morgan’s platform for tokenized debt. This pushed the company further toward the institutional RWA segment: custody of tokenized bonds, transaction record keeping, and helping corporate clients transition to blockchain-based infrastructure.

In practice, BlackRock and State Street have taken two different flanks: one expanded institutional access to Bitcoin and on-chain funds, while the other built the backend for tokenized financial instruments. Both strategies sent the market a clear message: digital assets are no longer peripheral—they are becoming part of the standard institutional toolkit.

Vanguard: why the firm stayed on the sidelines — and what forced it to change course

For many years, Vanguard remained the most consistent critic of cryptocurrencies among the Big Three. The firm built its reputation on long-term index strategies and, as a matter of principle, avoided any highly volatile instruments. When the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in 2024, Vanguard not only refused to support them on its brokerage platform but also restricted access even to Bitcoin futures products. The reasoning was straightforward: crypto assets do not match the profile of retirement portfolios and do not align with the company’s philosophy.

The pivot in 2025 marked the first departure from that line in a decade. On December 2, the company allowed its clients to buy and sell third-party crypto ETFs and mutual funds with exposure to Bitcoin, Ethereum, and other popular digital assets. This does not mean Vanguard is launching its own products, but it signaled that a total ban no longer works amid demand from millions of investors.On social media, users were quick to point out how sharply the company’s stance had changed. They contrasted last year’s comments about Bitcoin’s speculative nature with the current decision to let crypto ETFs onto the platform.

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The company’s shift is best explained by market dynamics. As the spot ETF market expanded, it became clear that institutional demand for regulated crypto instruments is not fading. BlackRock and Fidelity quickly took leading positions, and Vanguard risked becoming the only major provider that did not offer clients access to this asset class. At the same time, the trend toward tokenization of funds and debt instruments—driven by competitors—intensified, making it strategically risky to ignore the shift.

That is why Vanguard’s move looks pragmatic: the firm still is not creating its own crypto products, but it no longer restricts access to those that have already become a market standard. It is a concession that would have been hard to imagine a year ago—and a signal that even the most conservative institutions can no longer keep crypto entirely “outside the brackets.”

Digital assets move into the institutional mainstream

The Big Three’s shift in stance effectively closes a decade-long chapter of debates over the role of cryptocurrencies in traditional finance. BlackRock normalized institutional access through ETFs, State Street built infrastructure for tokenized debt instruments, and Vanguard stopped keeping cryptocurrencies outside its client offering. Together, this creates an effect that is already impossible to ignore.

Crypto is no longer a niche instrument and is becoming part of the standard toolkit for large investors. This is not just another market trend, but a gradual integration of digital assets into the operations of pension funds, brokerage platforms, and institutional infrastructure. The Big Three do not make impulsive decisions, so their synchronized move into the segment signals the stabilization of the asset class at a level that once seemed out of reach.

For the market, this is a signal that cryptocurrencies are moving from “experimental” assets into a category of instruments that can function within a long-term institutional model. That is exactly what makes 2025 a turning point for the industry.

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