The $10 trillion asset manager’s contradictory position highlights growing institutional exposure to Bitcoin through backdoor channels, despite public skepticism about crypto’s value.
Vanguard now holds over 20 million shares of Strategy (MSTR), making it the largest institutional shareholder with nearly 8% ownership, despite repeatedly dismissing Bitcoin as speculative. The $9 billion position was acquired through passive index funds, not direct crypto allocation, creating an ironic exposure to Michael Saylor’s Bitcoin-focused company which holds 601,550 BTC.
The investment contradicts Vanguard’s public stance that Bitcoin lacks “inherent economic value” and poses risks to portfolio stability. Analysts highlight this as a consequence of automated index strategies that override active investment philosophies, with VanEck’s Matthew Sigel calling it “institutional dementia.”
The situation reveals tensions in traditional finance as passive vehicles force exposure to assets firms publicly criticize. Vanguard’s position now exceeds Capital Group’s stake in Strategy, demonstrating how index mandates can create substantial indirect crypto exposure despite institutional resistance.
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