$9.3 trillion asset manager Vanguard has again pumped the brakes on Bitcoin (BTC), calling the digital asset a “speculative digital toy.” Bitcoin is better understood as a speculative collectible — akin to a popular plush toy — than as a productive asset, according to John Ameriks, Vanguard’s global head of quantitative equity. He also said the token lacks the income, compounding, and cash-flow properties the firm looks for in long-term investments.
Ameriks spoke at Bloomberg’s ETFs in Depth conference in New York, praising blockchain technology but wishing it didn’t have to involve crypto. “Is there a way to use only blockchain without involving cryptocurrency?” he was quoted as asking during the panel. Vanguard Group very recently allowed clients to trade spot Bitcoin exchange-traded funds.
“We allow people to hold and buy these ETFs on our platform if they wish to do so, but they do so with discretion,” Ameriks added. “We’re not going to give them advice as to whether buy or sell or which crypto tokens they ought to hold. That’s just not something we’re going to do at this point.”
Vanguard Still Believes BTC Has Potential, Just Not Near-Term
On the other hand, the Vanguard rep did concede that there are certain scenarios where he sees Bitcoin potentially offering non-speculative value. It’s possible that the coin could become more valuable in high-inflation environments or in periods of political instability, among other contexts. “If you can see reliable movement in the price in those circumstances, we can talk more sensibly about what the investment thesis might be and what role it could play in a portfolio,” he said. “But you just don’t have that yet — you’ve still got too short of a history.”
Also Read: Bitcoin Dips Despite Interest Rate Cut: What’s Going On?
At press time, Bitcoin (BTC) is facing a slight price correction, dipping to the $89,000 mark earlier today. According to CoinGecko, BTC has fallen 2.6% in the last 24 hours, 3.7% in the last week, 1.6% in the 14-day charts, 15.3% over the previous month, and 7.3% since December 2024. Many anticipated BTC to rally after the Fed’s latest interest rate cut. However, fresh volatility seems to have halted the surge.