Although Vanguard Group recently changed its stance and began allowing clients to trade spot Bitcoin ETFs, a senior investment director at the company stated that Vanguard's fundamental view on cryptocurrencies remains unchanged, describing Bitcoin as a digital version of Labubu, a speculative collectible.
Vanguard: Bitcoin is a digital version of Labubu
John Ameriks, Global Head of Quantitative Equities at Vanguard Group, stated at the Bloomberg ETF Deep Dive conference in New York that, due to the lack of clear evidence that Bitcoin's underlying technology can generate lasting economic value, BTC is more of a speculative digital collectible—similar to the popular plush toy Labubu—than a productive asset. He pointed out that Bitcoin lacks the income, compound interest, and cash flow characteristics that the company seeks in long-term investment.
Vanguard only allows trading in crypto ETFs and does not provide advice.
Vanguard has always been known for "not touching cryptocurrencies," and even stated multiple times in 2024 that it would refuse to list Bitcoin and Ethereum spot ETFs issued by BlackRock and Fidelity, claiming that they had no intrinsic value.
But even though this asset management firm, which manages $12 trillion in assets, had been avoiding launching its own cryptocurrency exchange-traded fund, it still opened such a product on its trading platform earlier this month, enabling its millions of investors to buy and sell certain digital asset ETFs.
Ameriks stated that part of the reason for this decision was the strong track record of cryptocurrency ETFs since the initial launch of Bitcoin funds in January 2024. Vanguard wants to ensure these products "live up to their name, as they are described."
Ameriks emphasized:
"We allow users to hold and buy these ETFs on our platform, but they must make their own decisions. Vanguard does not offer advice on which crypto tokens to buy, sell, or should hold, at least not at this time."
Bitcoin may have non-speculative value, but current historical data is insufficient to prove it.
Ameriks acknowledges that Bitcoin may possess non-speculative value in certain situations. For example, its value may be higher during periods of high inflation or political turmoil.
"If we could see reliable price movements under these circumstances, we could have a more rational discussion of the investment logic and its potential role in a portfolio. But we haven't seen that yet—the historical data is too short."
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