The global head of quantitative equity at Vanguard, John Ameriks, stated that bitcoin continues to be viewed more as a speculative collectible rather than a sustainable asset for long-term wealth, likening it to a “digital Labubu,” which refers to the plush toy popular among collectors.
Ameriks’ comments were made during Bloomberg’s ETFs in Depth conference in New York on Thursday, where he expressed that bitcoin lacks the income, compounding, and cash-flow characteristics that Vanguard seeks when assessing long-term investments.
This critical perspective comes as Vanguard has recently opened its platform to cryptocurrency exchange-traded funds, providing its 50 million clients access to regulated investment options from competitors like BlackRock and Fidelity.
The asset management giant’s cautious acceptance of cryptocurrency marks a shift from its longstanding skepticism towards the entire asset class. For years, Vanguard opposed offering cryptocurrency products to clients, reiterating its view that digital assets are highly speculative and misaligned with its core investment philosophy.
According to Ameriks, that perspective has not significantly shifted. Consequently, Vanguard does not plan to introduce its own crypto-focused ETFs. This decision is noteworthy given that bitcoin ETFs have become a leading revenue source for BlackRock.
Despite this, after observing that crypto ETFs and funds “have been tested through periods of market volatility, performing as designed while maintaining liquidity,” Vanguard decided to open its brokerage platform to these products.
Nevertheless, even with this access, Vanguard will refrain from advising clients regarding the purchase or sale of crypto assets or which tokens to hold, as stated by Ameriks.
Ameriks suggested that bitcoin might eventually exhibit non-speculative value under specific conditions, such as periods of high inflation or political instability, but he maintained that the evidence remains limited. “You’ve still got too short of a history,” he remarked.
