Vanguard Lets Clients Trade Bitcoin ETFs — Even as It Calls Bitcoin a ‘Digital Labubu’
Vanguard Group has quietly opened the door to spot Bitcoin exchange-traded funds, allowing clients to trade the products for the first time — even though the $12 trillion asset manager remains deeply skeptical of crypto.
Speaking at Bloomberg’s ETFs in Depth conference on Thursday, Vanguard’s global head of quantitative equity, John Ameriks, likened Bitcoin to a viral plush-toy collectible rather than a serious long-term investment.
“It’s difficult for me to think about Bitcoin as anything more than a digital Labubu,” Ameriks said, referring to the popular stuffed-toy craze. He argued that Bitcoin lacks the income, compounding, and cash flow Vanguard looks for in productive assets.
The comment comes as Bitcoin trades near $90,000, well below its October peak of $126,000.
Despite the skepticism, Vanguard now allows clients to buy and hold spot Bitcoin ETFs from third-party issuers — though it has no plans to launch its own crypto funds.
Access Without Endorsement
Vanguard’s move follows months of monitoring crypto ETFs after spot Bitcoin funds debuted in January 2024. According to Ameriks, the firm wanted to make sure the products “delivered what’s on the tin” and functioned as advertised.
Still, Vanguard is drawing a firm line between access and advice.
“We allow people to hold and buy these ETFs on our platform if they wish to do so,” Ameriks said. “But we’re not going to give advice on whether to buy or sell — or which crypto tokens to own.”
The platform opening reflects growing competitive pressure. Rivals BlackRock and Fidelity have pulled in billions of dollars through crypto ETFs, with BlackRock’s iShares Bitcoin Trust becoming the fastest ETF ever to reach $70 billion in assets.
Meanwhile, Vanguard clients had complained about being locked out of the market, with some threatening to move their accounts elsewhere.
Leadership Shift, Strategy Shift
A change at the top also helped drive the decision. New CEO Salim Ramji — formerly head of BlackRock’s ETF business and a key figure behind the launch of IBIT — has spoken more openly about blockchain’s potential, even as Vanguard insists it won’t roll out its own crypto products.
Andrew Kadjeski, Vanguard’s head of brokerage and investments, said crypto ETFs have now been “tested through periods of market volatility,” while operational and liquidity concerns have improved.
That marks a clear shift from former CEO Tim Buckley, who had argued Bitcoin ETFs had no place in retirement portfolios.
With more than 50 million clients worldwide, Vanguard’s platform change could funnel a new wave of mainstream capital into digital assets.
Skepticism Still Intact
Even so, Vanguard continues to classify cryptocurrencies as highly speculative. According to recent FINRA data, 66% of US investors now view crypto as very or extremely risky — up from 58% in 2021 — while interest in buying digital assets has fallen sharply.
Ameriks acknowledged that Bitcoin could prove useful in certain scenarios, such as periods of high inflation or political instability, but said the data still isn’t convincing.
“You’ve just got too short of a history,” he said.
A Vanguard spokesperson added that while the firm remains cautious about crypto as an investment, it is optimistic about blockchain technology and its potential to improve market infrastructure.
Ironically, Vanguard already has indirect exposure to Bitcoin as the second-largest institutional shareholder in Strategy, and treats crypto ETFs similarly to other “non-core” assets like gold on its US brokerage platform.
In short, Vanguard may still be rolling its eyes at Bitcoin — but it’s no longer standing in the way of clients who want in.
