Vanguard Dismisses Bitcoin as Toy Despite U-Turn - U.Today

According to Bloomberg, Vanguard’s perspective on Bitcoin remains largely skeptical despite the financial giant’s recent U-turn on the leading cryptocurrency

The firm views Bitcoin not as a productive asset but as a speculative collectible, akin to a digital version of a viral plush toy, Labubu

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 in very specific contexts, such as during periods of high inflation or political instability, but so far its history is too short and its price movements too volatile to support a solid investment thesis.