The post ‘Digital labubu’: Why Vanguard still refuses to endorse Bitcoin appeared on BitcoinEthereumNews.com. Bitcoin retreated from its recent peak as selling The post ‘Digital labubu’: Why Vanguard still refuses to endorse Bitcoin appeared on BitcoinEthereumNews.com. Bitcoin retreated from its recent peak as selling

‘Digital labubu’: Why Vanguard still refuses to endorse Bitcoin

2025/12/13 20:29

Bitcoin retreated from its recent peak as selling pressure returned across the broader market.

At press time, BTC traded near $92,000, extending a drawdown from its recent high, according to Bloomberg data.

The pullback revived familiar concerns around Bitcoin’s boom-and-bust cycles, even as institutional access continued to expand.

Vanguard calls Bitcoin a ‘digital Labubu’

The latest weakness coincided with sharp criticism from Vanguard, one of the world’s largest asset managers.

Despite opening its platform to allow clients to trade spot Bitcoin [BTC] ETFs, the firm doubled down on its skepticism.

Speaking at Bloomberg’s ETFs in Depth event in New York, John Ameriks, Vanguard’s Global Head of Quantitative Equity, directly addressed the question of Bitcoin’s investment merit, dismissing the asset with a mocking comparison.

He described the world’s largest cryptocurrency as a “digital Labubu,” referring to the viral elf-like plush toy.

Ameriks used this comparison to reinforce Vanguard’s core view: Bitcoin produces “no income, no compounding, and no cash flow.”

As a result, the $12 trillion asset manager treats it as a “collectible rather than a productive asset.”

Moreover, Ameriks strengthened his argument by saying the firm has seen “no proof that the technology behind it offers lasting economic value.”

His analogy continues a tradition of critics comparing Bitcoin to speculative manias, such as 17th-century Dutch tulips and 1990s Beanie Babies.

These comparisons suggest that Bitcoin’s value is driven by scarcity narratives and the “greater fool theory,” rather than intrinsic utility or cash flows.

Access allowed, conviction withheld

The irony of Amerik’s comments is starkly highlighted by the dramatic policy shift that preceded them.

Recently, Vanguard, under the leadership of newly appointed CEO Salim Ramji, a former BlackRock executive with a background in crypto, reversed its years-long resistance to digital assets.

The firm, managing approximately $12 trillion in assets, allows clients to trade crypto-focused ETFs that hold coins like Bitcoin, Ethereum [ETH], Ripple [XRP], and Solana [SOL] on its brokerage platform, effectively placing them alongside gold and other mainstream assets.

Ameriks said the decision followed the January 2024 debut of spot Bitcoin ETFs, which helped stabilize market infrastructure and liquidity.

However, he emphasized that Vanguard offered access without endorsement or investment guidance.

Vanguard’s decision, therefore, represents a profound paradox at the heart of the maturing crypto market.

Firm’s journey so far with digital assets

The world’s second-largest asset manager began offering access to crypto ETFs and related mutual funds to its more than 50 million brokerage customers on the 2nd of December.

This monumental policy shift, which dramatically reversed Vanguard’s anti-crypto stance in 2024, was driven by rising client demand.

Andrew Kadjeski, head of brokerage and investments at Vanguard, said the ETF structure had “proven resilient during volatility” and maintained robust liquidity.

At the same time, Vanguard mocks Bitcoin as a “digital Labubu” and avoids launching its own crypto products, showing it wants to meet demand without endorsing the asset.


Final Thoughts

  • The firm’s refusal to endorse Bitcoin, even as it offers ETF access, reflects a strategy aimed at satisfying client demand without embracing the asset’s long-term vision.
  • As the ETF era expands, critics’ comparisons to toys and bubbles reveal the cultural gap Bitcoin must still bridge to gain full legitimacy.
Next: $300M wiped out – Could BOJ rate hike fears spark a crypto crash?

Source: https://ambcrypto.com/digital-labubu-why-vanguard-still-refuses-to-endorse-bitcoin/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

SEC issues investor guide on crypto wallets and custody risks

SEC issues investor guide on crypto wallets and custody risks

The SEC released a guide on crypto wallets and custody for investors.
Share
Cryptopolitan2025/12/14 08:38
UK Looks to US to Adopt More Crypto-Friendly Approach

UK Looks to US to Adopt More Crypto-Friendly Approach

The post UK Looks to US to Adopt More Crypto-Friendly Approach appeared on BitcoinEthereumNews.com. The UK and US are reportedly preparing to deepen cooperation on digital assets, with Britain looking to copy the Trump administration’s crypto-friendly stance in a bid to boost innovation.  UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent discussed on Tuesday how the two nations could strengthen their coordination on crypto, the Financial Times reported on Tuesday, citing people familiar with the matter.  The discussions also involved representatives from crypto companies, including Coinbase, Circle Internet Group and Ripple, with executives from the Bank of America, Barclays and Citi also attending, according to the report. The agreement was made “last-minute” after crypto advocacy groups urged the UK government on Thursday to adopt a more open stance toward the industry, claiming its cautious approach to the sector has left the country lagging in innovation and policy.  Source: Rachel Reeves Deal to include stablecoins, look to unlock adoption Any deal between the countries is likely to include stablecoins, the Financial Times reported, an area of crypto that US President Donald Trump made a policy priority and in which his family has significant business interests. The Financial Times reported on Monday that UK crypto advocacy groups also slammed the Bank of England’s proposal to limit individual stablecoin holdings to between 10,000 British pounds ($13,650) and 20,000 pounds ($27,300), claiming it would be difficult and expensive to implement. UK banks appear to have slowed adoption too, with around 40% of 2,000 recently surveyed crypto investors saying that their banks had either blocked or delayed a payment to a crypto provider.  Many of these actions have been linked to concerns over volatility, fraud and scams. The UK has made some progress on crypto regulation recently, proposing a framework in May that would see crypto exchanges, dealers, and agents treated similarly to traditional finance firms, with…
Share
BitcoinEthereumNews2025/09/18 02:21