Vanguard Exec Calls Bitcoin a 'Digital Labubu', Even as Firm Offers Crypto ETF Trading

Core Viewpoint - Vanguard's senior executive compares Bitcoin to a speculative toy, highlighting skepticism towards digital assets despite the firm's recent move to allow trading of crypto-linked ETFs [1][2]. Group 1: Vanguard's Position on Bitcoin - John Ameriks, Vanguard's global head of quantitative equity, states that Bitcoin lacks the cash flow and compounding characteristics desired for long-term investments [2][5]. - Ameriks refers to Bitcoin as a "digital Labubu," indicating its perceived lack of economic value and likening it to speculative collectibles [3][4]. - The firm has recently begun permitting clients to trade crypto-focused ETFs and mutual funds, marking a significant shift in its stance towards digital assets [5][6]. Group 2: Market Context and Volatility - Bitcoin has experienced significant price volatility, recently trading near $90,000 after peaking above $126,000 in October, representing a decline of approximately 28.6% [5]. - The decision to allow trading of crypto assets follows the establishment of track records for spot Bitcoin ETFs launched in January 2024 [6]. Group 3: Future Outlook on Bitcoin - Ameriks acknowledges that Bitcoin could demonstrate value in specific scenarios, such as high inflation or political instability, but emphasizes that its historical performance is too short to support a solid investment thesis [7][8].