Ameriks said at Bloomberg's ETFs in Depth conference in New York City that it is difficult to think about Bitcoin as “anything more than a digital Labubu.”
Bitcoin News
Bitcoin is a purely speculative asset akin to a collectible toy, according to John Ameriks, global head of quantitative equity at asset management company Vanguard. The comments followed the firm's December announcement, which allows clients to trade cryptocurrency funds for the first time.
Ameriks said at Bloomberg's ETFs in Depth conference in New York City that it is difficult to think about Bitcoin as “anything more than a digital Labubu.” Labulus are collectible plush toys featuring animals with anthropomorphic features that have gained viral popularity.
Despite the criticism, Ameriks acknowledged that Bitcoin may have value beyond financial speculation in the future under certain circumstances. The cryptocurrency could find real-world use cases in scenarios of high fiat currency inflation or political instability, which drive adoption of alternative currencies.
The comments highlight doubts among analysts and executives in traditional finance about Bitcoin, even as its price hovers above $90,000 with 16 years of network uptime. Vanguard was the last of three major asset management companies, including BlackRock and State Street, to allow clients to hold crypto investment vehicles.
Ameriks said Vanguard allows people to hold and buy these ETFs on the platform if they wish to do so, but they do so with discretion. The firm will not offer investors advice regarding whether to buy or sell, or which crypto tokens they should hold.
The policy change gives Vanguard's over 50 million clients exposure to crypto markets and creates another bridge between traditional finance and digital assets. Fresh capital injections from Vanguard's clients could boost prices for cryptocurrencies tied to exchange-traded funds as institutional access expands.
Ameriks argued Bitcoin lacks the cash flow and compounding characteristics the firm seeks in long-term investments. He pointed to what he called an absence of clear evidence that underlying blockchain technology delivers durable economic value to justify current valuations.
Bitcoin has fallen sharply in recent weeks, trading near $90,000 on Friday after reaching highs above $126,000 in October, representing a decline of approximately 28.6%. Critics have drawn comparisons to speculative manias, including Dutch tulip bulbs in the 17th century and Beanie Babies in the late 1990s.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
