Vanguard, Which Allowed Bitcoin ETF Trading at the Beginning of the Month, Made a Disrespectful Statement About BTC

Although Vanguard Group now allows its clients to trade spot Bitcoin ETFs, one of the firm's senior investment managers stated that the institution's core approach to cryptocurrencies remains unchanged.

John Ameriks, Head of Global Quantitative Equity at Vanguard, stated that Bitcoin lacks the income generation, compound interest, and cash flow characteristics sought after for long-term investments, describing the crypto asset as a “speculative collector's item.”

Ameriks, speaking at the Bloomberg ETFs in Depth conference in New York, likened Bitcoin to a “digital Labubu,” referencing popular plush toy collections. “Unless the underlying technology provides clear evidence of generating lasting economic value, it's difficult to see Bitcoin as anything more than that,” he said.

The statements coincide with a sharp correction period in recent weeks, during which Bitcoin fell from $126,000 to $92,000. Bitcoin's historically volatile cycles have led Vanguard executives to describe BTC as a “speculative” asset in the past.

Nevertheless, the $12 trillion asset manager opened its platform to trading in select spot Bitcoin ETFs earlier this month. Ameriks stated that this decision was made after spot Bitcoin funds, which launched in January 2024, established a track record of performance over time. Vanguard said its primary goal is to “ensure these products truly deliver what they say on the box.”

The executive stated that the company would not advise clients on which crypto products to buy or sell, leaving investors to use these products “at their own discretion.” A company spokesperson added that Vanguard remains optimistic about the potential of blockchain technology to improve the market structure.

Ameriks also acknowledged that Bitcoin could offer non-speculative value under certain conditions. He said that Bitcoin could play a more meaningful role in environments such as periods of high inflation or political instability. However, he added that a reliable pattern in price movements has not yet emerged to support this.

“If we see consistent price behavior in such situations, then we can talk more rationally about Bitcoin’s role in the portfolio. But right now, there’s no such history yet; the past is still very short.”

*This is not investment advice.