Vanguard global head of quantitative equities John Ameriks said bitcoin It still looks more like a speculative collectible than an asset intended to generate long-term wealth, comparing it to a “digital Labubu,” the stuffed toy that has become a popular collectible.
Ameriks’ words came during Bloomberg’s ETFs in Depth conference in New York on Thursday, where he said bitcoin lacks the income, capitalization and cash flow characteristics that Vanguard looks for when evaluating long-term investments.
Its dismissive stance comes as Vanguard just opened its platform to cryptocurrency exchange-traded funds, allowing its 50 million clients to access regulated investment vehicles from rivals such as BlackRock and Fidelity.
The asset management giant’s grudging embrace of cryptocurrencies is a reversal of long-standing skepticism toward the entire asset class. For years, Vanguard opposed offering cryptocurrency products to its clients, reiterating that it considered digital assets to be highly speculative and not aligned with its core investment philosophy.
That view, according to Ameriks, has apparently not changed. As a result, Vanguard does not plan to launch its own cryptocurrency-focused ETFs. The decision is notable as bitcoin ETFs have become BlackRock’s main source of income.
Still, after Vanguard saw that crypto funds and ETFs “have been tested during periods of market volatility, performing as designed and maintaining liquidity,” the company opened its brokerage platform to these products.
Even with that access, Vanguard will not advise clients on whether to buy or sell cryptoassets or which tokens to hold, Ameriks said.
Ameriks said bitcoin could eventually show non-speculative value under certain conditions, such as high inflation or political instability, but argued the evidence is still limited. “You still have very little history,” he said.
