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During an event hosted by news outlet Bloomberg, a top executive from investment firm Vanguard made notable remarks. Although Vanguard still considers cryptocurrencies to be highly speculative products, the company’s clients have recently gained access to crypto-related investment products, such as Bitcoin exchange-traded funds (ETFs). These products, however, are not from Vanguard itself but from its competitors.
Vanguard’s Stance on Crypto Remains Unchanged #
According to executive John Ameriks, Vanguard’s vision for crypto remains unchanged. In Ameriks’ view, Bitcoin is still not a suitable tool for building long-term wealth.
Ameriks compares Bitcoin to Labubu, a popular collectible toy whose value is primarily driven by hype. He argues that Bitcoin lacks the ability to generate income, realize compound growth, or produce cash flows—characteristics Vanguard considers essential for long-term investments.
Access to Competitors’ Crypto Products #
Due to this perspective, Vanguard long refrained from offering crypto-related products. The firm has now opened its platform to such products from third parties.
For example, it is now possible for Vanguard clients to invest in Bitcoin ETFs from competitors like BlackRock or Fidelity. Although access to these products is now open, the firm does not advise its clients on them. Vanguard provides no buy or sell recommendations, as its position on cryptocurrencies is unchanged.
No In-House Crypto ETF for Now #
While crypto ETFs are popular and successful at other investment firms, Vanguard is not yet convinced.
Vanguard is not launching its own crypto ETF for the time being. Instead, the company enables clients to trade products from competitors through its own platform.
Ameriks indicated that Vanguard’s view on Bitcoin could change in the future. For that to happen, the company first wants to see more evidence of how Bitcoin behaves during periods of high inflation and political instability. According to him, the available data to date is insufficient to draw any conclusions.