Vanguard executive calls Bitcoin a "Digital Labubu," despite offering crypto

Source: PortaldoBitcoin Original Title: Vanguard Executive Calls Bitcoin a “Digital Labubu,” Despite Offering Crypto Original Link: A senior executive at asset manager Vanguard compared Bitcoin to a speculative toy this week, even as the firm moved forward to allow clients to trade ETFs linked to crypto — highlighting the persistent skepticism towards digital assets despite recent changes in national policy.

John Ameriks, Vanguard’s Global Head of Quantitative Equity, stated that Bitcoin lacks cash flow or capitalization characteristics that the company seeks in long-term investments. Speaking at Bloomberg’s “ETFs in Depth” conference in New York, Ameriks described the cryptocurrency as a “Digital Labubu,” referencing viral plush collectibles.

“It’s hard for me to think of Bitcoin as anything other than a digital Labubu,” Ameriks said, pointing to what he called the lack of clear evidence that the underlying blockchain technology offers long-term economic value.

Bitcoin has long been compared to speculative fads and collectibles, including 17th-century Dutch tulips and Beanie Babies from the late 1990s. Critics use these analogies to argue that Bitcoin’s price surges are driven more by scarcity narratives and speculation than by cash flows or real-world applications.

Another point highlighted by experts is volatility. Bitcoin plummeted significantly in recent weeks, trading at US$ 89,014 on Sunday ( after reaching highs above US$ 126,000 in October — a roughly 29% drop.

Vanguard Offers Bitcoin

Ameriks’s comments come at a time when Vanguard recently allowed clients to trade crypto-focused ETFs and mutual funds on its brokerage platform, ending years of resistance to digital asset exposure after Bitcoin supporter CEO Salim Ramji took over in 2024.

Vanguard manages about US$ 12 trillion in assets and now permits clients to buy and sell funds holding Bitcoin, Ethereum, XRP, and Solana, placing crypto alongside other assets like gold.

Ameriks stated that Vanguard’s decision to open access to trading followed a successful track record for spot Bitcoin ETFs launched in January 2024.

“We allow people to hold and buy these ETFs on our platform if they want to do so, but they do so discreetly,” Ameriks said. “We’re not giving advice on buying or selling, or which crypto tokens they should hold.”

Ameriks also said that Bitcoin may eventually demonstrate value in specific scenarios, such as periods of high inflation or political instability, but argued that the asset’s history is still too short to support a clear investment thesis.

“If you can see reliable movements in price under these circumstances, we could have a more rational conversation about what the investment thesis might be,” he said. “But that still doesn’t exist.”