Vanguard Group has recently opened its platform for clients to trade spot Bitcoin ETFs, yet a senior investment manager at the firm expressed a rather dismissive stance towards the cryptocurrency. John Ameriks, the Head of Global Quantitative Equity at Vanguard, stated that the firm”s fundamental approach to cryptocurrencies remains unchanged.
During remarks at the Bloomberg ETFs in Depth conference held in New York, Ameriks emphasized that Bitcoin lacks key attributes like income generation, compound interest, and cash flow, which are typically desirable for long-term investments. He referred to Bitcoin as a “speculative collector”s item,” drawing an analogy to popular plush toy collections by likening it to a “digital Labubu.” Ameriks argued that without clear evidence of the underlying technology generating sustainable economic value, Bitcoin is challenging to consider beyond this classification.
His comments surfaced during a period marked by significant price corrections for Bitcoin, which has seen a decline from $126,000 to $92,000 in recent weeks. Historically, Bitcoin”s volatility has led to similar descriptions from Vanguard executives, who have labeled it a speculative asset. Nonetheless, the $12 trillion asset manager decided to permit trading in select spot Bitcoin ETFs earlier this month.
Ameriks clarified that this decision was based on the performance history established by spot Bitcoin funds introduced in January 2024. Vanguard aims to ensure that these products meet their promised value. He added that the company would not guide clients on specific crypto products to buy or sell, allowing investors to make those choices independently.
A spokesperson from Vanguard also noted the firm”s optimism regarding the potential for blockchain technology to enhance market structures. Ameriks acknowledged that under certain circumstances, Bitcoin could provide non-speculative value, particularly during periods of high inflation or political unrest. However, he cautioned that a consistent pattern in Bitcoin”s price movements has yet to be established to support such claims.
He stated, “If we see consistent price behavior in such situations, then we can talk more rationally about Bitcoin”s role in the portfolio. But right now, there”s no such history yet; the past is still very short.”
