A senior Vanguard executive has drawn renewed attention to the asset manager’s cautious stance on digital assets, even as the firm has broadened client access to crypto-linked exchange-traded funds. Speaking this week at Bloomberg’s ETFs in Depth conference in New York, Vanguard global head of quantitative equity John Ameriks compared Bitcoin to a well-known collectible toy Labubu, underscoring skepticism about its long-term investment merits.
Ameriks said Bitcoin lacks the cash flow, compounding characteristics, and economic fundamentals Vanguard typically seeks in assets intended for long-term portfolios. He referred to the cryptocurrency as a “digital Labubu,” a nod to viral collectible plush toys, and questioned whether blockchain technology has yet demonstrated durable economic value at scale. His remarks came despite shifting regulatory and market conditions that have pushed crypto exposure closer to the financial mainstream.
Vanguard Opens the Door to Crypto ETFs
The comments contrast with Vanguard’s recent decision to allow brokerage clients to trade crypto-focused ETFs and mutual funds. The firm now permits access to regulated products holding Bitcoin, Ethereum, XRP, and Solana, placing them alongside other non-core assets such as commodities. Vanguard manages roughly $12 trillion in assets, making the policy shift notable across the asset management industry.
Ameriks said the decision followed the establishment of trading history and market infrastructure for spot Bitcoin ETFs launched in early 2024. He emphasized that Vanguard is providing access, not endorsement, and will not offer investment guidance related to crypto assets. Clients can buy or sell these products at their discretion, but the firm continues to frame digital assets as outside its core investment philosophy.
Institutional Skepticism amid Policy Shifts
Bitcoin’s volatility remains a central concern for traditional asset managers. The cryptocurrency has experienced sharp price swings in recent months, reinforcing arguments that its valuation is driven more by scarcity narratives and investor sentiment than by measurable cash flows. Critics have long compared Bitcoin to speculative episodes such as historical commodity manias or modern collectibles, a view Ameriks echoed in his remarks.
At the same time, national policy developments and growing institutional participation are reshaping the competitive landscape. U.S. regulators have provided clearer frameworks for crypto investment products, prompting firms like Vanguard to accommodate client demand without fully embracing the asset class. Competitors have taken varied approaches, with some actively promoting crypto allocations and others maintaining guarded neutrality.
Ameriks acknowledged Bitcoin could eventually demonstrate value in specific macroeconomic scenarios, such as periods of high inflation or political instability. However, he said the asset’s relatively short history makes it difficult to support a consistent investment thesis today. The divide between access and advocacy highlights the broader tension facing institutional investors as digital assets move closer to traditional finance.