Vanguard Group now allows clients to trade spot Bitcoin ETFs, but one of the company’s senior investment managers said Vanguard Group’s core approach to cryptocurrencies has not changed.
John Amerix, Vanguard’s global head of quantitative equities, described the crypto asset as a “speculative collector’s item” as Bitcoin lacks the income generation, compounding and cash flow characteristics required for long-term investing.
Speaking at the Bloomberg ETFs in Depth conference in New York, Amerix referred to his popular stuffed animal collection and likened Bitcoin to a “digital love.” “Unless the underlying technology provides clear evidence that it creates lasting economic value, it’s hard to see Bitcoin as anything more than that,” he said.
This statement coincides with a sharp correction period in recent weeks that saw Bitcoin fall from $126,000 to $92,000. Bitcoin’s historically volatile cycles have led Vanguard executives to describe BTC as a “speculative” asset in the past.
Nevertheless, the $12 trillion asset manager opened a trading platform for select Bitcoin ETFs earlier this month. Amerix said the decision was made after its Spot Bitcoin fund, launched in January 2024, established a track record of long-term performance. Vanguard said its primary goal is to “ensure these products deliver on what they say on the box.”
The executive said the company does not advise customers on which crypto products to buy or sell, allowing investors to use these products “at their own discretion.” The company spokesperson added that Vanguard remains optimistic about blockchain technology’s potential to improve market structure.
Amerix also acknowledged that Bitcoin has the potential to provide non-speculative value under certain conditions. He said Bitcoin could play a more meaningful role in environments such as periods of high inflation or political instability. However, he added that no reliable price movement pattern has yet emerged to support this.
“If we see a consistent price trend in such a situation, we can talk more rationally about the role of Bitcoin in a portfolio. But right now, we don’t have that history yet. The past is still very short.”
*This is not investment advice.
