Vanguard Steps In, but What’s Behind Bitcoin’s 30% and XRP’s 40% Plunge?

▲ XRP and Bitcoin (BTC)

Vanguard, one of the world’s largest asset managers, has opened the gates to the cryptocurrency market, marking a milestone for mainstream adoption. Yet the market has faced a cruel irony, with Bitcoin (BTC) and XRP plunging by tens of percent.

According to crypto media outlet The Crypto Basic on Feb. 25 (local time), since Vanguard allowed access to spot Bitcoin ETFs through its brokerage platform on Dec. 2, Bitcoin has fallen by about 30%. During the same period, major digital assets, including XRP, have plunged nearly 40%. Vanguard had long maintained a skeptical stance toward digital assets, but after nearly two years of deliberation, it opened the door for retail clients to invest directly through regulated funds. However, despite this historic decision, the crypto market has suffered one of its harshest pullbacks of the current cycle, leaving investors with steep losses.

Nate Geraci, president of NovaDius Wealth, described the situation as “brutal timing,” pointing out the irony that Vanguard’s long-awaited entry, after two years of consideration, coincided with a sharp market downturn. On the day Vanguard enabled access to crypto ETFs, Bitcoin surged about 6%, reaching a high of $92,330 as it reflected the positive news. It has since reversed course, falling to around $64,900. Even the strong bullish catalyst of mainstream adoption has failed to overcome macroeconomic pressures and cyclical market corrections.

XRP’s situation is even more severe. Following the announcement of Vanguard’s service launch, XRP also climbed more than 6% to $2.18 but has since dropped over 37% from its peak and is currently trading near $1.36. Despite continued ecosystem expansion and active network activity, it was unable to withstand the broader market-wide sell-off. Other top market-cap assets such as Ethereum (ETH) and Solana (SOL) have also recorded declines approaching 40%, delivering a harsh welcome to Vanguard clients.

For Vanguard customers, the introduction of this service marked their first opportunity to gain exposure to digital assets through familiar brokerage accounts without the technical barriers of using exchanges or managing individual wallets. However, the immediate price decline following improved accessibility has dealt a significant psychological blow to new investors. Experts note that Vanguard’s decision did not cause the market downturn but rather illustrates the unpredictability of the market and the mismatch in timing that even institutional investors struggle to navigate.

In conclusion, despite sharp price volatility, the fact that major financial institutions are beginning to incorporate digital assets into their portfolios is a positive long-term signal. Prices may continue to fluctuate, but expanded access indicates that Bitcoin and XRP are increasingly being integrated into the category of traditional investment assets. As the crypto market combines with institutional financial infrastructure and undergoes structural improvements, these growing pains are expected to contribute to greater market maturity.

Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.