Vanguard just did something it spent years resisting.
The $9+ trillion asset management giant has opened the door to Bitcoin trading for the first time—even as one of its top executives compares the asset to a collectible toy.
John Ameriks, Vanguard’s global head of quantitative equity, didn’t mince words at Bloomberg’s ETFs in Depth conference in New York. He said it’s hard to view Bitcoin as anything more than “a digital Labubu,” likening it to the viral plush toys that surge in popularity, then fade.
In other words: fun to collect, hard to value.
So Why Allow Bitcoin Trading Now?
That’s the contradiction, and it’s the real story.
Despite Ameriks’ skepticism, Vanguard quietly updated its platform in December to allow clients to buy and hold crypto-linked ETFs. This made Vanguard the last major holdout after BlackRock and State Street—to give investors direct access to crypto investment vehicles.
The message is clear:
Vanguard may not believe in Bitcoin—but it believes in client demand.
“We’ll Let You Buy It. We Just Won’t Recommend It.”
Ameriks was careful to draw a line.
Vanguard will not provide guidance on whether clients should buy or sell Bitcoin ETFs, nor will it suggest which crypto assets to hold. Investors can access the products, but they’re on their own.
That hands-off stance reflects Vanguard’s long-standing investment philosophy: focus on cash flows, compounding, and long-term fundamentals. And by that definition, Ameriks argues Bitcoin falls short.
“No cash flow. No compounding. No clear proof of durable economic value,” he said.
Still, Ameriks left the door slightly open.
He acknowledged that Bitcoin could find real-world utility in extreme environments—such as high inflation, currency collapse, or political instability where alternative monetary systems gain traction.
That’s a subtle shift from outright dismissal to conditional relevance.
And it comes at an interesting moment.
Bitcoin is trading near $90,000, down roughly 29% from its October peak above $126,000. Yet it continues to run with 16 years of uninterrupted network uptime, a track record few technologies can match.
Critics, however, aren’t convinced. Comparisons to Dutch tulip mania and Beanie Babies are back in circulation, fueled by the recent drawdown and the lack of traditional valuation anchors.
The Bigger Signal
Whether Vanguard likes it or not, allowing Bitcoin trading is a milestone.
With over 50 million clients, even a small allocation from Vanguard’s user base could inject meaningful capital into crypto-linked ETFs. More importantly, it tightens the bridge between traditional finance and digital assets.
The takeaway?
Vanguard doesn’t believe Bitcoin is an investment.
But it believes ignoring it is no longer an option.
And in markets, that kind of reluctant acceptance often matters more than enthusiasm.
