Bitcoin has been the world's largest cryptocurrency for over a decade. However, many traditional investors still ignore the value of this asset.
One such investor is Vanguard, a US-based investment advisory firm that once again questioned Bitcoin's credibility last Thursday.
At the ETFs in Depth conference, John Ameriks, Vanguard's global head of quantitative equities, expressed a rather controversial opinion. He stated that Bitcoin is merely a speculative asset, no different from collectible toys like the currently trending Labubu.
“It’s difficult for me to think about Bitcoin as anything more than a digital Labubu,” said the Vanguard executive. According to him, Bitcoin does not possess enough cash flow and a cumulative trait sought by Vanguard when evaluating long-term investment assets.
He also believes that blockchain technology has no concrete evidence of being able to provide long-term economic value.
Ameriks' statement aligns with the opinion of Vanguard founder and legendary investor Jack Bogle. In 2017, the late Bogle made a statement that divided investors' opinions.
“Avoid bitcoin like the plague. Did I make myself clear?” said Bogle in a Council on Foreign Relations event, reported by CNBC on 29/11/2017.
Bogle continued, “There is nothing to support Bitcoin except the hope that you will sell it to someone for more than you paid for it.”
At that time, the value of Bitcoin was still at $11,000. However, in the volatile crypto market, a lot can change in a matter of days, let alone years.
Today, Bitcoin is priced around $90,000, with the number of holders continuing to increase. In fact, Vanguard began offering access to cryptocurrency trading at the start of this month.
This second-largest asset manager in the world, though deemed rather conventional, has allowed its 50 million clients to access cryptocurrencies, such as Ether, XRP, Solana, and of course, Bitcoin.
As a Vanguard executive who has yet to acknowledge Bitcoin’s potential and opportunities, Ameriks explained, “We allow people to hold and buy these ETFs on our platform if they wish to do so, but they do so with discretion.”
Ameriks also added that Vanguard indeed provides access to cryptocurrency, but will not provide advice on which token to buy or sell.
Previously, Vanguard announced that it would steer clear of crypto-related products. Its decision to open access to crypto now demonstrates how the traditional financial world and cryptocurrency continue to merge.
This is in conjunction with an increasing number of young investors who own crypto assets. A Zerohash study shows that 35% of investors withdraw their funds from financial management services that do not offer crypto products.
Both individual and institutional investors must adapt to the emergence of cryptocurrency in the investment world. Despite skeptical statements from Ameriks and Bogle, the popularity and value of Bitcoin continue to rise.
On the other hand, investors should not immediately purchase Bitcoin before conducting thorough research. Learn how to do your own token research to be a wise investor in the article What is DYOR: Definition, Why It’s Important, and How to Apply It in Cryptocurrency.
