Vanguard Executive Likens Bitcoin to a 'Digital Labubu' Despite Firm's Major Crypto ETF Pivot

A senior executive at Vanguard, John Ameriks, the global head of quantitative equity, expressed deep skepticism toward Bitcoin, comparing the cryptocurrency to a "digital Labubu"—a speculative collectible toy. He argued that Bitcoin lacks the cash flow and compounding characteristics that Vanguard seeks in long-term investments, stating there is no clear evidence that the underlying blockchain technology offers durable economic value.

Ameriks' comments were made even as Vanguard has recently made a significant shift, allowing its over 50 million brokerage clients to trade crypto-linked exchange-traded funds (ETFs), including those holding Bitcoin, Ethereum, XRP, and Solana. This change, which puts crypto products on par with other non-core assets like gold, follows the appointment of pro-Bitcoin CEO Salim Ramji in 2024 and ends years of the firm's resistance to digital assets.

Key Points of Skepticism and Volatility

• Speculative Analogy: Ameriks' "digital Labubu" comment reinforces long-standing comparisons of Bitcoin to speculative manias like the Dutch tulip craze or Beanie Babies, suggesting its price is driven more by scarcity narratives and speculation than intrinsic value.
• Lack of Investment Thesis: He maintained that Bitcoin's short history makes it difficult to form a clear investment thesis, though he acknowledged it could eventually demonstrate value during times of high inflation or political instability.
• Recent Volatility: The report highlighted Bitcoin's recent volatility, noting a significant decline of about 28.6% from its October high of over $126,000 to approximately $90,000.

Vanguard's Position on Access

While allowing trading, Ameriks emphasized that Vanguard's decision was based on the establishment of track records for spot Bitcoin ETFs launched in January 2024. However, the firm maintains a distance from the asset:

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

In short, Vanguard is providing access to crypto ETFs as a service but remains skeptical about the long-term investment merits of Bitcoin itself.

December 2025, Cryptoniteuae