Imagine, if you will, a world where the stodgy, ever-so-skeptical Vanguard finds itself, quite unexpectedly, the largest institutional shareholder of a company that’s practically married to Bitcoin. Yes, you read that right. Vanguard, the firm that’s been warning its clients about the perils of cryptocurrencies like they’re the financial equivalent of a rollercoaster ride, is now deeply entangled with Michael Saylor’s MicroStrategy (MSTR).
According to the latest data from the investment research platform Intel, Vanguard has amassed over 20 million shares of MSTR, which is about 8% of MicroStrategy’s outstanding Class A common stock. This means Vanguard now has an indirect stake in over 200,000 Bitcoin (BTC) held by MicroStrategy, a 26.3% increase between January and April 2025. 🤯
Many of Vanguard’s funds, including the Vanguard Total Stock Market Index Fund, hold MicroStrategy as part of their broad U.S. equity allocation. The stock also appears in dozens of Vanguard mutual funds and exchange-traded funds (ETFs) that track mid-cap benchmarks. It’s like being dragged to a party you didn’t want to go to, but now you’re the life of it. 🎉
Despite this newfound exposure, Vanguard remains a steadfast skeptic of Bitcoin and cryptocurrencies. The firm has consistently warned clients about the volatility of crypto and, unlike its rivals, has steadfastly refused to offer access to spot Bitcoin ETFs. It’s as if they’re saying, “We’re here, but we’re not really here.” 🙃
Vanguard still bearish despite IBIT’s Success
Over the years, Vanguard has been one of the biggest Bitcoin and crypto bears in traditional finance. And despite its exposure to MicroStrategy, that attitude doesn’t seem to be changing. In an interview with Bloomberg TV in May, Vanguard CEO Salim Ramji was asked whether the company would accommodate a client who wants to add Bitcoin to their portfolio. He declined, emphasizing that Vanguard does not get “caught up in the latest fad, but we’re dependable for the long term.”
In a recent interview with ETF.com, Ramji said that Vanguard was not “in the business of making bets on speculative assets like Bitcoin,” adding, “That’s just not consistent with the investment philosophy we’ve built over 50 years.” It’s like they’re holding a sign that says, “We’re here, but we’re not really here.” 🤷♂️
Meanwhile, asset manager BlackRock has seen its iShares Bitcoin Trust ETF (IBIT) quickly become the company’s most profitable ETF. According to Bloomberg Senior ETF analyst Eric Balchunas, it’s on track to reach $100 billion in assets under management in the coming months.
I wrote last wk that $IBIT could hit $100b this summer, but hell, could be this month. Thx to recent flows + overnight rally it’s already at $88b. At only 1.5yrs old is now 20th biggest in US, 7th biggest for BlackRock (and their #1 most profitable ETF). Un-freaking-believable.
— Eric Balchunas (@EricBalchunas) July 14, 2025
“God has a sense of humor”
Vanguard’s unexpected exposure to Bitcoin has shed light on the quirks of passive investing. Bloomberg ETF analyst Eric Balchunas summed it up: “When you have an index fund, you have to own all the stocks, for better or worse — and that includes stocks you may not like or approve of personally.” He added that Vanguard’s outsized exposure to MicroStrategy, a company synonymous with Bitcoin maximalism, is a reminder that “God has a sense of humor.”
The fact that Vanguard is now the largest shareholder of $MSTR is proof that God has a sense of humor, or at least that was my reaction to @VildanaHajric who wrote story about it out today
— Eric Balchunas (@EricBalchunas) July 14, 2025
Read More
- DOT PREDICTION. DOT cryptocurrency
- Gold Rate Forecast
- AAVE PREDICTION. AAVE cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- Silver Rate Forecast
- BTC GBP PREDICTION. BTC cryptocurrency
- FARTCOIN PREDICTION. FARTCOIN cryptocurrency
- Dogecoin’s Price Explosion: Will DOGE Soar to $0.22 or Crash in Epic Fashion?
- USD THB PREDICTION
- Brent Oil Forecast
2025-07-15 21:31