Vanguard Lets Clients Trade Bitcoin ETFs While a Senior Executive Calls Bitcoin a ‘Digital Labubu’

Vanguard opens ETF trading access as an executive warns bitcoin is a “digital labubu”

On Dec. 13, 2025, Vanguard began allowing clients on its brokerage platform to trade spot bitcoin exchange-traded funds (ETFs) while one of its senior investment executives publicly described bitcoin as a “digital labubu.” John Ameriks, identified by Vanguard as a senior investment executive, used the phrase in comments that reiterated the firm’s long-standing caution about cryptocurrencies.

The two moves — operationally enabling ETF trading and publicly repeating a skeptical view — pulled back the curtain on a simple tension: Vanguard is giving clients the tools to trade crypto-linked products even as its leadership signals that it sees bitcoin as a highly speculative asset.

Ameriks’ view: cautious words from a senior Vanguard investment executive

John Ameriks, a senior investment executive at Vanguard, told reporters on Dec. 13 that bitcoin remains a risky, speculative asset and described it bluntly as a “digital labubu.” He stressed that this language reflected the firm’s caution about investor exposure to volatile, low-dividend assets that lack traditional cash flows.

Vanguard also issued a public statement at the same time making the operational point that allowing trading access is not the same as changing its investment guidance. The firm said its policies for client advice and its assessment of bitcoin’s risk profile remain unchanged; adding ETF trading simply means clients can execute orders through Vanguard’s brokerage infrastructure. In short: retail access has increased, but Vanguard has not shifted from a cautious stance to an endorsement of bitcoin as a core holding.

How markets reacted — what we can measure and what we still need

At the time of this report I do not have live market tape in front of me. To understand the immediate market impact you should fetch a short list of concrete metrics: bitcoin’s intraday price change, volumes and net flows into the major spot bitcoin ETFs, intraday trading volume and bid-ask spreads for the ETFs as traded on U.S. exchanges, NAV premium or discount versus market price, and any sudden changes in order-book depth or authorized participant activity.

Suggested data sources to cite when you pull those numbers: the consolidated tape or major exchanges for spot bitcoin pricing, ETF providers’ intraday disclosures and daily filings for net flows, market-data terminals (Bloomberg, Refinitiv) or exchange order-books for spread and depth, and the SEC’s EDGAR system for any fund statements. If you track venues, check Coinbase Institutional, Binance’s institutional feed (where available), and the primary U.S. exchange listing for each ETF for order-book snapshots.

Absent those real-time figures, the safest summary is this: opening brokerage access typically raises retail participation and intraday volume for related ETFs, which can narrow spreads but also amplify short-term volatility if many retail traders attempt to trade into thin moments. Whether Vanguard’s move caused a sharp price swing or just a modest uptick in activity depends on the volume and flow numbers described above.

What investors should consider before using Vanguard’s ETF access

This matters most to retail investors who use Vanguard’s brokerage services and to advisors who custody client assets at Vanguard. For those groups, ETF access changes the execution path but not the fundamental exposures: trading a spot bitcoin ETF gives you fund-level exposure to bitcoin price moves without having to manage private keys; it does not eliminate market swing risk, custody counterparty risk or tax complexity.

Think about these practical items:

• Execution and costs — ETFs carry expense ratios, trading commissions (if applicable), and bid-ask spreads. Compare the ETF’s ongoing fee and typical spread to any alternative you might use (spot custody, futures-based products).
• Custody and counterparty risk — the ETF holds bitcoin through custodians. Check which custodian the ETF uses, whether assets are insured and how redemption in-kind would work in stress.
• Position sizing and volatility — treat any bitcoin ETF position as high-volatility. Limit size relative to portfolio and decide in advance how you will respond to large swings.
• Tax and reporting — funds may produce complex tax items; ETF distributions and capital gains can differ from holding spot bitcoin directly.

For many long-term investors, the simplest position is to keep crypto exposure small, explicitly labeled for high risk, and to prefer dollar-cost averaging if they choose to participate. For active traders, watch spreads and depth closely during the first days of trading on the Vanguard platform.

Wider context: how Vanguard’s move fits the industry and what regulators may watch

Vanguard joining the ranks of platforms offering ETF access is a follow-through of a trend started by big asset managers and brokers that now let customers trade spot crypto ETFs. BlackRock (BLK) and other major firms paved the way by launching ETF products and building the custody arrangements and market plumbing the funds require.

Regulators will keep watching custody standards, the role of authorized participants (who create and redeem ETF shares), and broker-dealer suitability for retail clients. Questions investors should watch include: where do ETFs custody the underlying bitcoin, how robust is insurance coverage, and will regulators demand new disclosures about liquidity and redemption mechanics in stressed markets?

What to watch next — data points and events that will matter

• Daily ETF flow reports and intraday volume for the first week after Vanguard’s move.
• Any follow-up comments or guidance from Vanguard clarifying how it will police suitability and product access.
• Statements from ETF issuers and custodians about redemption mechanics and insurance terms.
• Regulatory commentary from the SEC or other agencies about broker-dealer responsibilities for crypto ETFs.

Bottom line: Vanguard’s opening of trading access makes it easier for its clients to buy bitcoin-linked ETFs, but the firm’s senior executive publicly calling bitcoin a “digital labubu” is a reminder that access is not an endorsement. For investors, this is an operational change that increases convenience and liquidity risk — not a change in the underlying risk profile of the asset class.

Sources

• coindesk.com