Key Highlights
- Vanguard allows clients to trade Bitcoin ETFs but still views Bitcoin as a risky, speculative asset.
- John Ameriks said Bitcoin lacks income, cash flow, and long-term growth, making it more like a collectible than a serious investment.
- Vanguard provides access to crypto ETFs but does not advise on buying or selling them.
Vanguard Group, one of the world’s largest asset managers, now lets clients trade Bitcoin exchange-traded funds (ETFs), but the firm still does not see cryptocurrencies as serious investments.
John Ameriks, Vanguard’s global head of quantitative equity, spoke on Thursday at Bloomberg’s ETFs in Depth conference in New York. According to the report, Ameriks said Bitcoin is “better understood as a speculative collectible—akin to a popular plush toy” rather than an asset that produces income or grows value over time.
While there is a lack of evidence that the underlying technology delivers durable economic value, “it’s difficult for me to think about Bitcoin as anything more than a digital Labubu,” he added.
According to Ameriks, Bitcoin is more like a fun item people collect than a serious investment that makes money over time. He thinks it does not have the usual features that Vanguard looks for, like income, steady growth, or long-term value.
Bitcoin remains risky and volatile
Ameriks’ statement comes as Bitcoin faces a price drop that saw its price plunge from an all-time high of $126K to currently trading for $90,152. The cryptocurrency has lost 11% of its value in the last month, according to CoinMarketCap data.
Bitcoin is known to be very volatile, so its price can lose value quickly and then often bounce back. Vanguard has often seen these cryptocurrencies as risky and speculative, and Ameriks said this view has not changed.
Even though Vanguard has not created its own crypto ETFs, it recently opened its platform to let clients buy and sell some digital-asset ETFs. Ameriks explained that this decision came after observing how crypto ETFs performed since the first Bitcoin funds launched in January 2024. Ameriks said that Vanguard wanted to make sure these products “delivered what’s on the tin, the way that they’re described.”
Providing access but not advice
Vanguard stated that it will not give advice on which cryptocurrencies to buy or sell. “We allow people to hold and buy these ETFs on our platform if they wish to do so, but they do so with discretion,” Ameriks said. Clients are expected to make their own choices about crypto investments without guidance from Vanguard, he emphasized.
He also noted that Bitcoin might gain real value in certain situations, like periods of high inflation or political instability. “If you can see reliable movement in the price in those circumstances, we can talk more sensibly about what the investment thesis might be and what role it could play in a portfolio,” he said.
For now, Vanguard remains careful, allowing access to crypto ETFs to its investors while keeping a cautious long-term view. The company wants to provide options for clients who are interested in cryptocurrency, but it continues to question whether Bitcoin will ever become a productive, reliable investment.
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