Vanguard’s Stance on Bitcoin: A Digital Labubu or a Viable Investment?
Vanguard Group, a $12 trillion asset manager, has recently allowed clients to trade spot Bitcoin exchange-traded funds (ETFs) on its platform, despite expressing skepticism towards the cryptocurrency. According to John Ameriks, Vanguard’s global head of quantitative equity, Bitcoin lacks the income, compounding, and cash flow that the firm seeks in long-term investments, comparing it to a viral plush toy collectible, specifically a “digital Labubu.”
As Bitcoin’s price hovers around $90,000, down from $126,000 in October, Vanguard’s decision to open its platform to third-party crypto products has sparked interest among investors. The firm’s longstanding position against launching its own crypto-focused ETFs remains unchanged, with Ameriks emphasizing that Vanguard won’t advise clients on whether to buy or sell digital-asset ETFs. 
Platform Opens Despite Investment Doubts
Vanguard’s decision to allow ETF trading followed months of tracking the performance of crypto products, which launched in January 2024. The firm wanted to ensure these products “delivered what’s on the tin, the way that they’re described,” Ameriks explained. However, he stressed that Vanguard won’t provide advice on buying or selling digital-asset ETFs, allowing clients to make their own decisions. 
Source: TradingView
Leadership Change Drives Strategic Shift
The firm’s leadership transition played a key role in the platform’s opening, with Salim Ranji, the new CEO, overseeing the launch of blockchain-based products during his time at BlackRock. Andrew Kadjeski, head of brokerage and investments at Vanguard, noted that “cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity.” Ranji’s predecessor, Tim Buckley, had expressed skepticism towards Bitcoin, but the new leadership has brought a fresh perspective to the firm’s approach to digital assets.
Speculative Asset View Persists Despite Market Evolution
Vanguard executives have consistently labeled cryptocurrencies as speculative investments, with 66% of US investors sharing this view, according to recent FINRA Foundation data. Ameriks conceded that Bitcoin might offer non-speculative value in certain scenarios, such as high-inflation environments or periods of political instability. However, he emphasized that the firm remains cautious and treats crypto funds similarly to other “non-core” assets, such as gold, on its US brokerage platform. For more information, visit the original source: https://cryptonews.com/news/bitcoin-is-a-digital-labubu-says-vanguard-yet-it-opens-etf-trading/
