Bitcoin pulled back from its recent peak as selling pressure returned to the broader market.
At the time of writing, BTC said traded nearly $92,000, according to Bloomberg data, down from the recent high.
The pullback revived familiar concerns about 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 customers to spot trade Bitcoin [BTC] ETFs, the company doubled down on its skepticism.
Speak 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 value, dismissing the asset with a mocking comparison.
He described the world’s largest cryptocurrency as a “digital Labubu,” referring to the viral elf-like cuddly toy.
Americans used this equation 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.”
Furthermore, Ameriks strengthened its argument by saying that the company has “seen no evidence that the technology behind it provides lasting economic value.”
His analogy continues a tradition of critics comparing Bitcoin to speculative manias, such as Dutch tulips of the 17th century and Beanie Babies of the 1990s.
These comparisons suggest that Bitcoin’s value is driven by scarcity narratives and the “greater fool theory,” and not by intrinsic utility or cash flows.
Entry allowed, conviction omitted
The irony of Amerik’s comments is clearly highlighted by the dramatic policy change that preceded them.
Recently, Vanguard, led by newly appointed CEO Salim Ramji, a former BlackRock executive with a background in crypto, reversed its longstanding resistance to digital assets.
The company, which manages approximately $12 trillion in assets, allows clients to trade crypto-focused ETFs that include coins such as 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 provided access without approval or investment guidance.
“We allow people to hold and buy these ETFs on our platform if they wish, but they do so with discretion. We are not going to give them advice on whether they should buy or sell, or which crypto tokens they should hold.”
Vanguard’s decision therefore represents a profound paradox at the heart of the maturing crypto market.
The company’s journey so far with digital assets
The second largest asset manager in the world started offering access to crypto ETFs and related mutual funds to its more than 50 million brokerage customers on December 2.
This monumental policy change, which dramatically reversed Vanguard’s anti-crypto stance in 2024, was driven by rising customer demand.
Andrew Kadjeski, head of brokerage and investments at Vanguard, said the ETF structure has “proven resilient during volatility” and maintained robust liquidity.
At the same time, Vanguard derides Bitcoin as a “digital Labubu” and avoids launching its own crypto products, showing that it wants to meet demand without underwriting the asset.
Final thoughts
- The company’s refusal to endorse Bitcoin even as it offers ETF access reflects a strategy focused on meeting customer demand without embracing the asset’s long-term view.
- As the ETF era expands, critics’ comparisons to toys and bubbles reveal the cultural divide Bitcoin still must bridge to gain full legitimacy.