Bitcoin Climbs Above $95K as Vanguard Opens Crypto Doors to 50 Million Investors

Vanguard’s historic shift into Bitcoin ETFs represents a watershed moment for institutional crypto adoption, even as executives remain skeptical about Bitcoin’s intrinsic value compared to speculative collectibles. With Bitcoin trading near $95.56K and Vanguard’s 50 million clients now able to access crypto funds directly, the convergence of traditional finance and digital assets is accelerating faster than many anticipated.

The Vanguard Turning Point: When Skepticism Meets Market Reality

Vanguard, historically the laggard among major asset managers, finally embraced Bitcoin ETFs in December 2025—the last of the “big three” to do so, following BlackRock and State Street’s earlier entries into crypto. This policy reversal is particularly striking given the firm’s internal skepticism about Bitcoin as an asset class.

John Ameriks, global head of quantitative equity at Vanguard, offered a candid assessment at Bloomberg’s ETFs in Depth conference, comparing Bitcoin to collectible phenomena. “It’s difficult for me to think about Bitcoin as anything more than a digital Labubu,” Ameriks stated, referencing the trendy plush toy collectibles that fluctuate wildly based on hype rather than fundamental value. His comparison mirrors modern collector culture—whether discussing Labubu plush toys or doge plush merchandise—where speculative fervor often drives prices disconnected from utility. Yet Ameriks didn’t close the door entirely, acknowledging that Bitcoin might play a meaningful role in economic scenarios marked by runaway inflation or political upheaval, scenarios where alternative currencies gain real traction.

Institutional Capital Flooding In: The $30 Billion Question

Despite leadership skepticism, the market dynamics tell a different story. Since regulatory green lights arrived in January 2024 with SEC approval of 11 spot Bitcoin ETFs, institutional capital has poured in aggressively. Farside Investors data reveals Bitcoin ETFs alone have absorbed over $30 billion in inflows, creating powerful tailwinds for price appreciation.

Vanguard’s entry channels billions more. With access now available to over 50 million clients spanning retail and institutional portfolios, the flow dynamics could intensify significantly. Bitcoin’s climb to $95.56K—up from levels below $10 in 2012—illustrates the asset’s trajectory amid waves of institutional adoption.

Vanguard’s position differs from endorsement: the firm allows clients discretionary trading of crypto exchange-traded funds on its platform without providing specific buy-or-sell guidance on tokens. This neutral posture lets institutional capital flow to Bitcoin while protecting Vanguard from advisory liability on speculative positions.

The Technical Case Underpinning Skepticism’s Limits

While Ameriks views Bitcoin through a speculative lens today, the cryptocurrency’s technical architecture resists easy dismissal. Bitcoin’s blockchain has operated continuously since 2009 with zero major security breaches across 16 years—a robustness track record that appeals to risk-averse institutions. Its proof-of-work consensus secures over $1 trillion in market capitalization, creating network effects that stabilize adoption.

The correlation between Bitcoin and traditional equity markets has declined meaningfully, thanks partly to ETF structures that attract diversified institutional capital. Portfolio theory suggests even small allocations—perhaps 5% alongside stocks and bonds—can reduce overall volatility while capturing upside from Bitcoin’s growth narrative.

From Speculation to Infrastructure: Potential Applications

Ameriks’ implicit acknowledgment—that Bitcoin could transition from pure speculation to economic hedge—finds real-world precedent. In nations experiencing hyperinflation like Venezuela and Zimbabwe, Bitcoin has already functioned as a store of value alternative to collapsing currencies. As layer-2 scaling technologies mature, Bitcoin’s efficiency in payments and remittances could improve substantially, especially for cross-border transfers where traditional wires prove slow and expensive.

Over 100 million wallets now exist globally per Chainalysis reports, suggesting adoption infrastructure continues expanding. Each Vanguard client with ETF access represents potential pathway conversion from passive holder to active participant in this expanding ecosystem.

Market Implications: Stability Through Distribution

The policy shift creates feedback loops worth monitoring. Vanguard’s injection of conservative, institutional capital could establish firmer price floors during volatility spikes—a mechanism observed during Bitcoin’s 50% drawdown in 2022 and subsequent recovery. With Bitcoin trading near $95.56K and showing resilience despite macro headwinds, ETF-driven liquidity may accelerate normalization within global finance.

BlackRock’s iShares Bitcoin Trust demonstrates the appetite: the fund has grown to over $20 billion in assets under management by late 2025, becoming one of the fastest-growing ETFs on record. State Street followed, and now Vanguard amplifies the trend.

However, Vanguard maintains cautious messaging. The firm emphasizes that clients must conduct personal risk assessment, acknowledging volatility persistence and regulatory evolution as ongoing factors.

What This Means for Everyday Investors

Vanguard’s Bitcoin ETF access eliminates friction points that previously deterred mainstream participation: no wallet management complexity, no exchange account registrations, no custody concerns. A retail investor at Vanguard can now allocate capital to Bitcoin with the same ease as purchasing stock ETFs—a material simplification.

The move also signals that skepticism and participation aren’t mutually exclusive. Vanguard executives can view Bitcoin as speculative today while acknowledging potential utility tomorrow, and simultaneously provide client access. This pragmatic stance—distinct from enthusiasm—may characterize institutional crypto adoption for years ahead.

The Broader Picture: Digital Assets Enter the Mainstream Portfolio

Vanguard’s decision represents the completion of a cycle. When Bitcoin launched in 2009, traditional finance dismissed it entirely. By 2024, regulatory approvals transformed Bitcoin from fringe speculation to institutional infrastructure. Vanguard’s December 2025 policy change marks the moment when institutional inertia finally shifted toward accommodation.

For investors, the landscape has fundamentally changed. Bitcoin’s proven network resilience, combined with $95.56K price levels and expanding ETF accessibility through major asset managers, positions cryptocurrency as an emerging portfolio component rather than pure speculation. Yet Ameriks’ Labubu comparison serves as appropriate reminder: speculative dynamics remain potent, and prudent investors should diversify cautiously while understanding the difference between collector’s enthusiasm and fundamental value.