   
A senior Vanguard executive has claimed that Bitcoin is a purely speculative asset, likening it to a collectible even as the Wall Street giant opened the door to crypto-linked exchange-traded funds.
Bitcoin is no better than a hug: Vanguard Analyst
John Ameriks, Vanguard’s global head of quantitative equities, said Thursday at Bloomberg’s ETFs in Depth conference in New York that Bitcoin lacked the cash flow and compounding properties the firm looked for when evaluating long-term investments.
According to Ameriks, Bitcoin still looks more like a speculative collectible than an asset intended to build long-term wealth. In fact, he characterized the world’s largest and oldest cryptocurrency as a “digital Labubu,” referring to the viral plush collectibles.
“It is difficult for me to see Bitcoin as anything other than a digital Labubu,” the executive postulated, highlighting what he called the lack of clear evidence that the underlying blockchain technology provides long-term economic value.
Bitcoin has long been compared to speculative manias and collectibles, including Dutch tulip bulbs and Beanie Babies. Detractors have pointed to these analogies, claiming that Bitcoin’s price gains have been driven more by speculation than real-world use cases.
 Despite Ameriks’ dismissive stance, he suggested that Bitcoin could find future use cases beyond market speculation in scenarios of high inflation or political instability.
Vanguard finally enters Crypto Fray
Ameriks’ comments followed Vanguard’s announcement earlier this month, giving its 50 million customers access to funds using cryptocurrencies such as Bitcoin, Ether, Ripple’s XRP and Solana.
“We allow people to hold and buy these ETFs on our platform if they wish, but they do so with discretion,” Ameriks noted, adding that even with that access, Vanguard will not provide clients with “advice on whether they should buy or sell or which crypto tokens they should hold.”
Vanguard had previously said it would steer clear of crypto-related products, including the spot BTC ETFs offered by rivals BlackRock and Fidelity. The company’s decision to now allow digital assets on its platform shows how the worlds of traditional finance and cryptocurrency continue to merge.
Despite reluctantly changing course, Vanguard has no plans to roll out its own crypto ETFs. This is notable considering that spot BTC funds have become BlackRock’s largest sources of revenue.
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