Vanguard Exec Says Bitcoin Is Like 'A Digital Labubu'

Core Viewpoint - Bitcoin is viewed skeptically by Vanguard, with a senior executive labeling it a speculative "digital toy" lacking the characteristics of long-term investments [1][2]. Group 1: Vanguard's Position on Bitcoin - John Ameriks, Vanguard's Global Head of Quantitative Equity, stated that Bitcoin does not meet the firm's investment criteria due to its lack of income, compounding, and cash-flow characteristics [1]. - Ameriks compared Bitcoin to a viral plush toy collectible, emphasizing its speculative nature and the absence of durable economic value [2]. - Despite skepticism, Vanguard has opened its trading platform to spot Bitcoin exchange-traded funds (ETFs), allowing clients to trade cryptocurrency-linked products following the establishment of trading track records [3]. Group 2: Future Plans and Market Sentiment - Vanguard does not intend to launch its own crypto-focused ETFs and will not provide guidance on buying or selling digital assets [4]. - Ameriks acknowledged that Bitcoin could show non-speculative value in limited scenarios, such as high inflation or political instability, but emphasized the need for consistent price behavior during such conditions [5]. - A spokesperson for Vanguard expressed a constructive view on blockchain technology and its potential to enhance market structure [5]. Group 3: Bitcoin Market Dynamics - Bitcoin recently rebounded near $85,000, forming higher lows, indicating easing downside momentum, but continues to trade below key moving averages [7]. - Immediate support for Bitcoin is identified between $88,500 and $89,000, with major support at $85,000 [8].