Vanguard Exec calls Bitcoin a ‘digital labubu’ even as company offers crypto ETF trading

A senior Vanguard executive this week likened Bitcoin to a speculative toy even as the asset manager took steps to allow clients to trade crypto-linked exchange-traded funds — underscoring continued skepticism toward digital assets despite recent national policy shifts.

According to a report from BloombergJohn Ameriks, Vanguard’s global head of quantitative equities, said Bitcoin lacked the cash flow and compounding characteristics the firm sought in long-term investments. Speaking at Bloomberg’s ETFs in Depth conference in New York, Ameriks described the cryptocurrency as a “digital Labubu,” a reference to the 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 delivers sustainable economic value.

Bitcoin has long drawn comparisons to speculative manias and collectibles, including Dutch tulip bulbs in the 17th century and Beanie Babies in the late 1990s. Critics have used these analogies to argue that Bitcoin’s price gains have been driven more by narratives of scarcity and speculation than by underlying cash flows or real-world use cases.

Another concern pointed out by experts is volatility. Bitcoin has fallen sharply in recent weeks, trading around $90,000 on Friday after peaking above $126,000 in October – down about 28.6%.

Ameriks’ comments come as Vanguard recently began allowing customers to trade crypto-focused ETFs and mutual funds on its brokerage platform, ending years of resistance to exposure to digital assets after pro-Bitcoin CEO Salim Ramji was appointed in 2024.

Vanguard manages approximately $12 trillion in assets and now offers clients the ability to buy and sell funds containing Bitcoin, Ethereum, XRP and Solana, placing crypto alongside other assets such as gold.

Ameriks said Vanguard’s decision to open trading access followed establishing track records for spot Bitcoin ETFs that launched in January 2024.

“We allow people to hold and purchase these ETFs on our platform if they wish, but they do so with discretion,” Ameriks said. “We’re not going to give them advice on whether to buy or sell, or which crypto tokens to hold.”

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

“If you can see reliable price movement under those conditions, we can talk more sensibly about what the investment thesis might be,” he said. “But you just don’t have that yet.”