Vanguard now allows Bitcoin ETF trading—but still doubts its long-term value
Vanguard has reversed its strict stance on cryptocurrencies by allowing clients to trade Bitcoin, Ethereum, Ripple, and Solana ETFs. The move marks a shift from its earlier blockade, which began in January 2024. Despite this change, the investment giant still refuses to endorse Bitcoin as a long-term asset.
The decision comes as Bitcoin's price dips from recent highs, currently hovering near $92,000 after a sharp pullback.
Vanguard officially opened access to crypto ETFs and related mutual funds for its brokerage customers on December 2, 2024. The shift follows months of growing client demand and the successful launch of spot Bitcoin ETFs in January 2024. These ETFs helped improve market stability and liquidity, making them a more viable option for traditional investors.
Andrew Kadjeski, Vanguard’s head of brokerage and investments, highlighted the ETF structure as a key advantage. He noted that it maintains strong liquidity even during periods of high volatility. However, the firm remains cautious about Bitcoin's fundamental value.
John Ameriks, Vanguard’s global head of quantitative equity, dismissed Bitcoin as a 'digital Labubu'—a playful comparison to a novelty toy. He argued that, unlike traditional assets, Bitcoin generates no income, cash flow, or compounding returns. The company continues to view it as a speculative collectible rather than a productive investment.
While Vanguard now permits trading of spot Bitcoin ETFs, it does not offer investment advice on cryptocurrencies. The firm’s approach reflects a balancing act: meeting client interest while maintaining scepticism about Bitcoin's long-term economic role.
Vanguard’s decision to allow crypto ETF trading signals a response to market trends rather than a full endorsement. Clients can now access these products, but the firm still questions Bitcoin's underlying value. The move keeps Vanguard aligned with demand while keeping its distance from the asset's volatile reputation.
