Vanguard Remains Skeptical of Bitcoin Despite Opening Access to Spot ETFs

Vanguard Group, one of the world’s largest asset managers with roughly $12 trillion in assets under management, continues to reject Bitcoin as a long-term investment, even as it allows clients to trade spot Bitcoin ETFs. According to John Ameriks, Vanguard’s global head of quantitative equity, the firm’s fundamental stance on crypto assets has not changed, and Bitcoin still does not meet Vanguard’s investment standards.

Speaking at Bloomberg’s ETFs in Depth conference in New York, Ameriks described Bitcoin as closer to a speculative collectible than a productive financial asset. He famously likened it to a viral toy, calling it a “digital Labubu,” to emphasize its speculative nature. Ameriks explained that Vanguard prioritizes investments that generate income, produce cash flow, and compound value over time. In his view, Bitcoin lacks all three characteristics, making it unsuitable for long-term portfolios focused on sustainable growth.

Despite this skepticism, Vanguard recently allowed a limited number of spot Bitcoin ETFs to be traded on its platform. This decision gives millions of Vanguard clients access to Bitcoin-linked ETFs, although the firm itself does not sponsor or operate a Bitcoin ETF. Ameriks noted that the move followed months of monitoring Bitcoin ETF activity to ensure the products functioned as intended. However, Vanguard does not promote crypto investing and offers no recommendations to buy, sell, or hold Bitcoin or other digital assets.

The comments come amid heightened Bitcoin price volatility. According to TradingView data, Bitcoin recently fell to around $92,000 from highs near $126,000 just weeks earlier. While sharp declines in Bitcoin’s history have often been followed by strong recoveries, significant price swings remain a defining feature of the asset.

Ameriks acknowledged that Bitcoin could serve a role during periods of high inflation or political instability, but argued that its relatively short history makes it difficult to build a reliable investment thesis. By contrast, Vanguard has expressed cautious optimism about blockchain technology itself, viewing it as a potential tool to improve financial infrastructure and market efficiency. That optimism, however, does not yet extend to Bitcoin as an investment asset.