Vanguard’s Cautious Bitcoin Embrace: Skepticism Meets Market Reality

In a significant yet conflicted move, Vanguard Group—the $12 trillion asset management giant—has begun permitting clients to trade spot Bitcoin ETFs, despite its leadership publicly dismissing Bitcoin as a speculative "digital Labubu" akin to viral plush toys. This development, reported as of late 2025, marks a pivotal moment where institutional pragmatism collides with deep-seated skepticism in the traditional finance world. John Ameriks, Vanguard's global head of quantitative equity, solidified the firm's skeptical stance at the Bloomberg ETFs in Depth conference, categorizing Bitcoin not as a productive asset but as a speculative collectible. The analogy to Labubu—a trendy, whimsical toy—underscores a view of Bitcoin as a narrative-driven, volatile phenomenon lacking intrinsic value. This perspective is rooted in traditional finance principles that prioritize cash-flow-generating assets. However, Vanguard's decision to enable Bitcoin ETF trading reveals a nuanced, two-track strategy. While its philosophical stance remains bearish, competitive and client pressures are forcing an operational adaptation. The move acknowledges the undeniable market demand and maturation of cryptocurrency infrastructure, particularly following the SEC's approval of spot Bitcoin ETFs. It represents a cautious, risk-managed entry point, allowing Vanguard to serve client interests without endorsing the asset class from an investment philosophy standpoint. This contradiction highlights a broader tension in finance: the clash between established valuation frameworks and disruptive digital assets. For Bitcoin advocates, the access provided by a behemoth like Vanguard is a monumental step toward legitimacy and mainstream adoption, potentially funneling significant new capital into the ecosystem. For skeptics, it's a compliance-driven concession that doesn't alter Bitcoin's fundamental risk profile. Looking ahead, Vanguard's move is less a bullish signal on Bitcoin's price and more a testament to its entrenched market position. It sets a precedent for other hesitant institutions, suggesting that even the most skeptical players must develop a crypto strategy. The long-term impact may accelerate institutional adoption, improve liquidity, and foster more sophisticated financial products around digital assets, even as the debate over their fundamental value rages on.

Vanguard Permits Bitcoin ETF Trading Despite Calling It a 'Digital Labubu'

Vanguard Group now allows clients to trade spot Bitcoin ETFs, marking a cautious step into crypto markets while maintaining deep skepticism. John Ameriks, Vanguard's global head of quantitative equity, dismissed Bitcoin as a speculative collectible rather than a productive asset during Bloomberg's ETFs in Depth conference.

The $12 trillion asset manager compared bitcoin to viral plush toys—referencing the Labubu craze—citing its lack of income generation or cash flow. This stance persists even as Bitcoin trades around $90,000, down from its October peak of $126,000.

While Vanguard spent months monitoring crypto ETF performance before enabling trading this month, Ameriks emphasized the firm won't recommend these products. The move follows January's spot Bitcoin ETF launches, which Vanguard evaluated for adherence to their stated objectives.

Brazil’s Itaú Urges 3% Bitcoin Allocation as Institutional Adoption Grows

Itaú Asset Management, the investment arm of Brazil’s largest private bank, has recommended clients allocate 1% to 3% of their portfolios to Bitcoin. The MOVE signals growing institutional acceptance despite Bitcoin’s 30% correction from October 2025 highs.

Analyst Renato Eid framed Bitcoin as an uncorrelated asset class, distinct from equities or fixed income. ‘Volatility remains, but BTC serves as both a hedge and growth vehicle during traditional market stress,’ he noted.

The guidance aligns with Morgan Stanley’s 2-4% and Bank of America’s 1-4% crypto allocation frameworks. Brazilian investors face additional complexity as the real gained 15% against the dollar this year, amplifying local BTC losses.

Bitnomial Secures CFTC Approval for US Prediction Markets, Expanding Crypto Derivatives Ecosystem

Bitnomial Clearinghouse LLC has received regulatory approval from the Commodity Futures Trading Commission (CFTC) to clear fully collateralized swaps, marking a significant milestone for the Chicago-based derivatives exchange. The green light enables the launch of regulated prediction markets where participants can speculate on cryptocurrency valuations and macroeconomic events.

The firm's existing product suite—including Bitcoin futures, options, and Leveraged spot trading—now gains complementary prediction market capabilities. President Michael Dunn framed the approval as a sector-wide catalyst, noting the clearinghouse will support both internal platforms and external partners through its infrastructure services.

This development follows Bitnomial's recent authorization to operate a CFTC-regulated spot trading facility. Combined, these regulatory victories establish a comprehensive trading framework compliant with US oversight requirements. The clearinghouse operates as a back-end provider rather than direct retail trading platform, focusing on institutional-grade infrastructure.

Vanguard Quant Head Dismisses Bitcoin as 'Digital Labubu' Amid ETF Policy Shift

Vanguard, the world's second-largest asset manager, has begun allowing Bitcoin ETF trading on its platform despite maintaining a skeptical stance toward cryptocurrency. John Ameriks, the firm's global head of quantitative equity, compared BTC to speculative collectibles rather than productive assets at a Bloomberg conference on December 11.

The trillion-dollar asset manager sees no evidence of durable economic value in Bitcoin's technology. Ameriks emphasized BTC lacks the income generation, compounding, and cash FLOW characteristics Vanguard requires for long-term investments. This contradiction highlights how financial institutions may adopt crypto products for commercial reasons while remaining unconvinced of their fundamental worth.

MicroStrategy's Bitcoin Bet Tests Nasdaq 100 Inclusion as MSCI Reviews Index Eligibility

MicroStrategy's unorthodox transformation into a Bitcoin proxy faces fresh scrutiny as index providers reassess its eligibility. The enterprise software firm turned digital asset treasury vehicle retained its Nasdaq 100 position amid this quarter's rebalancing, even as peers like Biogen and Lululemon exited the benchmark.

MSCI's pending decision on whether to classify MicroStrategy as an investment fund rather than a technology company could Ripple through crypto markets. The firm's $8 billion Bitcoin position now dwarfs its legacy business - a transformation that began when it rebranded from MicroStrategy to Strategy in 2020.

Analysts note the stock now trades as a leveraged Bitcoin ETF alternative, with 90-day correlation to BTC reaching 0.97. This creates peculiar dynamics: the company raised $1.4 billion through at-the-market stock offerings in Q2 alone, funneling proceeds directly into Bitcoin purchases.

Short-Term Bitcoin Holders Dominated 2025 Profits Despite Volatility

Bitcoin's 2025 price action delivered consistent profits for short-term holders, even as volatility rattled the broader market. Addresses holding BTC for one to three months spent 66% of trading days in the green, according to CryptoQuant's on-chain data. These investors capitalized on rallies above $100,000, with realized gains peaking during mid-year surges.

The pattern highlights a counterintuitive advantage of tactical exposure during bull cycles. While long-term holders weathered drawdowns, short-term traders repeatedly locked in profits whenever BTC reclaimed levels above their average realized price. January's stability set the tone for a year where timing trumped tenure.