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.
“We allow people to hold and buy these ETFs on our platform if they wish to do so, but they do so with discretion. We’re going to not give them advice as to whether to buy or sell, or which crypto tokens they ought to hold.”
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.