Vanguard Executive Compares Bitcoin to Digital Labubu, Questions Long-Term Investment Value

Despite recent adjustments in national policies, asset management giant Vanguard's executive compared Bitcoin to a speculative toy this week, highlighting ongoing skepticism from traditional financial institutions towards digital assets. Meanwhile, the company has started allowing clients to trade cryptocurrency-related ETFs. According to Bloomberg, Vanguard's Global Head of Quantitative Equities John Ameriks stated that Bitcoin lacks the cash flow and compounding characteristics sought by the company in long-term investments. He described cryptocurrencies as digital Labubu at Bloomberg's ETFs in Depth conference in New York, emphasizing the lack of clear evidence that underlying blockchain technology can generate lasting economic value. Managing around $12 trillion in assets, Vanguard now permits clients to buy and sell funds holding Bitcoin, Ethereum, XRP, and Solana, placing cryptocurrencies alongside other assets like gold. Ameriks explained that the decision to open trading access was based on the successful tracking record of the spot Bitcoin ETF launched in January 2024. If clients wish, we allow them to hold and purchase these ETFs on the platform, but this is their own judgment, he said, we do not provide advice on trading decisions or specific token holdings. He acknowledged that Bitcoin may eventually demonstrate value in specific scenarios (such as high inflation or political turmoil), but stressed that the asset's history is too short to support a clear investment logic. We can only discuss its investment logic more rationally if reliable price movements in these situations are observed, he said, but such evidence does not currently exist.

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