The crypto-skeptical investment giant now has significant exposure to Bitcoin.The crypto-skeptical investment giant now has significant exposure to Bitcoin.

Bitcoin-skeptical Vanguard holds 20m+ shares in Strategy amid index inflows

2 min read

The crypto-skeptical Wall Street giant has significant indirect exposure to Bitcoin, thanks to Strategy and other stocks.

Vanguard has long held that crypto assets are too risky and lack inherent value. However, due to the mechanics of its index funds, the investment giant, managing $10.4 trillion in assets, is now the largest institutional backer of Bitcoin (BTC) treasury firm Strategy.

Currently, Vanguard holds more than 20 million shares of Strategy’s outstanding Class A common stock. According to Bloomberg, this likely makes it the firm’s largest shareholder, having surpassed Capital Group Cos. sometime in the fourth quarter of 2024.

This position stems from the structure of Vanguard’s mutual funds and ETFs, which track broad market indexes. These funds automatically allocate to companies that meet specific criteria, including market capitalization, listing venue, geography, and sector classification.

Irony of Vanguard holding BTC firms

Vanguard has a longstanding skepticism of all crypto assets, including Bitcoin. Notably, the firm has not entered the Bitcoin ETF race and stated that it had no plans to do so. The firm has stated that crypto has no place among equities, bonds, and cash, which makes for a balanced and long-term investment portfolio.

Yet despite that stance, it has become one of the largest institutional holders of Strategy. To Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, this represents a twist of fate.

Vanguard has historically taken a conservative approach to investing, viewing crypto assets as too volatile for its client base. However, there are signs that its position may be evolving. In January, Balchunas predicted that Vanguard would eventually soften its stance on Bitcoin exposure and ETFs.

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