Major Positive News: The Federal Reserve Ends Tightening Plans, Vanguard Group Opens Crypto Trading

The Federal Reserve ended its quantitative tightening program on Monday and injected $1.35 billion in liquidity through overnight repos, marking the second-largest liquidity injection. As liquidity begins to ease, Bitcoin received a classic macro bullish signal on Tuesday. After a sharp sell-off over the past week that nearly liquidated $1 billion in leveraged positions, Bitcoin rebounded strongly on Tuesday, climbing above $90,000. Market analysts believe that with the Fed officially halting balance sheet reduction this month, Bitcoin and other risk assets could benefit from a new wave of liquidity, providing the biggest bullish impetus.

Vanguard Group, the world’s second-largest asset manager, is allowing its clients for the first time to purchase crypto exchange-traded funds (ETFs) managed by other institutions, opening up trading of Bitcoin, Ethereum, XRP, Solana, and other cryptocurrencies. It is worth noting that Vanguard has long publicly refused to offer any trading channels for Bitcoin or crypto-related ETFs. Even on the day the SEC approved the first spot Bitcoin ETFs in 2024, Vanguard explicitly stated it would not list any crypto products, taking a firm stance. This shift is described as ending years of resistance. Industry insiders point out that this move will, for the first time, open the door to compliant crypto investment products for Vanguard’s tens of millions of traditional, well-capitalized clients, potentially profoundly impacting the speed at which crypto assets penetrate mainstream institutions. However, it should be noted that Vanguard has not launched its own crypto funds and continues to exclude highly volatile meme coins.