Vanguard, the $10 trillion asset management giant known for its harsh criticism of cryptocurrencies, has ironically become one of the institutions with the most indirect exposure to Bitcoin.
Although the company does not invest directly in Bitcoin, thanks to the logic of index funds, it has become the investor with the largest share in Strategy shares, one of the symbolic names of the crypto market.
Vanguard holds about 8% of Strategy's publicly traded Class A shares, or more than 20 million shares. This percentage propelled Vanguard to the top shareholder position in the fourth quarter, surpassing Capital Group, according to data compiled by Bloomberg from regulatory filings. These shares are held by dozens of Vanguard funds, ranging from indices tracking small- and mid-cap companies to value, growth, and momentum strategies.
Vanguard management has maintained a clear stance against cryptocurrencies. CEO Tim Buckley has described Bitcoin as “speculative and lacking in economic value, unsuitable for long-term portfolios.” He also barred Bitcoin ETFs from trading on his platform when they launched in the US in 2024. “It's hard to imagine how they could fit into a truly long-term portfolio,” Buckley said.
Strategy, formerly known as MicroStrategy, became the first public company to invest heavily in Bitcoin since 2020. Led by Michael Saylor, the company funds its Bitcoin purchases by both borrowing and issuing stock. Since then, the company's shares have increased by approximately 3,400%. As the largest individual shareholder, Michael Saylor holds approximately 20 million shares, making him the world's largest institutional Bitcoin holder with over $70 billion in Bitcoin reserves.
“This is a strong signal that Bitcoin is increasingly being accepted by the traditional financial community as a legitimate reserve asset,” Saylor said of Vanguard's large holdings.
*This is not investment advice.
