Vanguard's senior analyst believes that Bitcoin is no different from a plush toy.

According to John Ameriks, Global Head of Quantitative Equity at Vanguard Asset Management, Bitcoin remains purely a speculative asset, similar to a collectible toy.

“I find it very difficult to see Bitcoin as anything other than a digital Labubu,” Ameriks shared at the ETFs in Depth conference organized by Bloomberg in New York.

Labubu is a famous collectible stuffed toy line inspired by animals with anthropomorphic features. Despite his quite frank remarks, Ameriks still believes that Bitcoin could hold value beyond financial speculation in the future if certain conditions are met.

He explained that cryptocurrencies could serve practical roles in contexts of high fiat inflation or political instability, where these factors drive demand for alternative currencies.

Ameriks’s comments come after Vanguard announced in December that it would allow clients to trade cryptocurrency investment funds for the first time. This move partly reflects the skepticism of traditional finance experts and leaders towards Bitcoin, even as its price has surpassed $90,000, with a stable network operating for 16 years.

Vanguard officially enters the cryptocurrency space

Vanguard is the last of the three major asset management giants—alongside BlackRock and State Street—to open access for clients to cryptocurrency-related investment products.

“We allow clients to hold and purchase these ETFs on our platform if they wish, but all decisions are up to them,” Ameriks said, reaffirming that Vanguard would not advise investors on which tokens to buy, sell, or choose.

ETFs remain a significant source of capital flowing into the digital asset market | Source: Farside Investors. The new policy helps over 50 million Vanguard clients access the cryptocurrency market, creating a bridge between traditional finance and digital assets, while also contributing to new capital flows into cryptocurrency networks. New investments from Vanguard clients could boost the value of digital currencies linked to ETF funds.