Vanguard took a tough stance on Bitcoin after launching a platform to identify ETF trading, saying the company doesn’t think there’s any long-term benefit to Bitcoin yet. The comments were made by John Amerix, the firm’s global head of quantitative equities, speaking at Bloomberg’s ETFs in Depth event in New York.
He said the coins provide no income, compound interest or cash flow, and that the company views the coins as collectibles rather than productive assets.
John also said the company has yet to see evidence that the technology behind it provides any lasting economic value. “It’s hard to think of Bitcoin as anything more than a digital lovey-dovey,” he said, referring to the much-talked-about stuffed animal. His comments gained attention as the coin traded near $92,000, retreating from $126,000 just a few weeks ago.
Vanguard’s stance is consistent with its previous view of cryptocurrencies, which it called speculative. The company oversees about $12 trillion but has no plans yet to launch its own crypto ETF.
However, earlier this month it opened trading access for investors wishing to buy or sell these funds.
John said this decision was made after observing the construction record of ETFs related to Bitcoin since January 2024. The company said it wanted to make sure products showed “what is written on the can and how it is described” before giving people access. John also stated that Vanguard does not provide any advice on when to buy or sell, nor does it recommend specific tokens to customers.
A spokesperson said the company sees potential in blockchain as a tool that could potentially improve the way markets work, even if that view does not change the company’s position on the token itself.
Vanguard allows users to trade ETFs, but stands by its views
John pointed out several cases where a coin may have value other than speculation. He said he could imagine a moment when Bitcoin moves in a profitable direction during times of high inflation or political stress. He said it’s still young and no pattern has yet been shown to reveal these cases.
“If we can see reliable price movement in those situations, then we can have a more intelligent discussion about what the investment thesis is and what role it can play in a portfolio,” John said, adding that the market hasn’t shown that yet.
He also reiterated that the firm does not intend to provide advice to clients regarding currently listed ETFs. He said Vanguard wanted investors to make their own decisions, which is why they opened up access only after observing how the initial ETF performed since its debut in January 2024.
Standard Chartered downgraded its view on the coin as demand from corporate treasuries slows and ETF inflows decline. The bank now sees Bitcoin reaching $150,000 by the end of 2026, after lowering its previous $300,000 call. Additionally, the long-term goal of $500,000 was originally set for 2028, but changed to 2030.
Bernstein analysts said they expect the coin to trend toward $150,000 by the end of next year and approach $200,000 by the end of 2027. In response to the decline, they withdrew their call for a $200,000 cap this year.
They said the coin currently appears to be operating outside of the four-year cycle that shaped its early days and could take a more stable path going forward.
