Vanguard: Bitcoin is a digital version of Labubu, a speculative collectible.

Asset management firm Vanguard Group(Vanguard Group), despite a recent shift in attitude and beginning to allow clients to trade spot Bitcoin ETFs, a senior investment executive from 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, Head of Global Quantitative Equities at Vanguard, said at the Bloomberg ETF Deep Dive Conference in New York that due to a lack of clear evidence that Bitcoin’s underlying technology can deliver lasting economic value, BTC is better described as a speculative digital collectible—similar to the popular plush toy Labubu. He pointed out that Bitcoin lacks the income, compounding, and cash flow characteristics sought in long-term investments.

Vanguard only opens trading for crypto ETFs and does not offer advice

Vanguard has always been known for its “avoid cryptocurrencies” stance, even repeatedly stating in 2024 that it would not list Bitcoin and Ethereum spot ETFs issued by BlackRock and Fidelity, citing lack of intrinsic value.

However, even though this asset management company managing $12 trillion in assets has historically avoided launching its own cryptocurrency exchange-traded funds, it recently opened such products on its trading platform at the beginning of this month, allowing millions of investors to buy and sell certain digital asset ETFs.

Ameriks stated that part of the reason for this decision is that since the launch of Bitcoin funds in January 2024, cryptocurrency ETFs have established a good track record. Vanguard hopes to ensure these products are “truly as they are described.”

Ameriks emphasized:

“We allow users to hold and purchase these ETFs on our platform, but they must make their own decisions. Vanguard does not provide advice on buying, selling, or which crypto tokens to hold, at least for now.”

Bitcoin may have non-speculative value, but current historical data is insufficient to prove it

Ameriks admitted that in some cases, Bitcoin may have non-speculative value. For example, during periods of high inflation or political turmoil, Bitcoin’s value could be higher.

“If you can observe reliable price trends in such situations, we can discuss investment logic more rationally and the potential role it might play in a portfolio. But we haven’t seen that yet—the historical data is still too short.”

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