According to Bloomberg, Vanguard’s perspective on Bitcoin remains largely skeptical despite the financial giant's recent U-turn on cryptocurrency-based exchange-traded products.
The firm views Bitcoin as a speculative collectible, akin to a digital version Labubu, which is a viral plush toy.
John Ameriks, Vanguard’s global head of quantitative equity, explained that the crypto king lacks the core characteristics that Vanguard looks for in long-term investments like income generation, compounding, and cash flow.
He has noted that the value of the leading cryptocurrency is primarily driven by market sentiment and speculation rather than underlying economic productivity.
VanEck's U-turn
As reported by U.Today, the financial giant recently allowed clients to trade spot Bitcoin ETFs on its platform.
Previously, the firm had refused to support Bitcoin ETFs when they first launched in early 2024.
The U-turn reportedly happened due to growing client demand and competitive pressure.
The firm does not provide advice on buying or selling cryptocurrencies and treats these products as optional vehicles for investors who wish to participate. Ameriks emphasized that Bitcoin could potentially gain practical value during periods of high inflation or political instability. So far, however, there is no solid investment thesis.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team