Vanguard, the financial behemoth with an impressive $10 trillion under management, has made an intriguing move in the world of cryptocurrency. As of July 2025, Vanguard is now the largest institutional shareholder of MicroStrategy (MSTR), a company widely recognized for its bold foray into Bitcoin accumulation. This unexpected twist comes despite Vanguard’s well-documented resistance to Bitcoin ETFs, leaving many in the crypto community scratching their heads.
Vanguard’s Unlikely Position
This revelation, first reported by Bloomberg, highlights Vanguard’s ownership of over 20 million shares of MSTR, representing more than 8% of the company and surpassing Capital Group as the top institutional holder. The stake, valued at approximately $9.26 billion, sparks questions about Vanguard’s crypto-related strategies—or lack thereof.
Bloomberg analyst Eric Balchunas wryly noted, “God has a sense of humor,” reflecting on the paradox of Vanguard’s position. “Vanguard chose this life. When you have an index fund, you have to own all the stocks, for better or worse, and that includes stocks that you may not like or approve of personally,” he added. It’s a sentiment echoed by Matthew Sigel, head of digital asset research at VanEck, who described Vanguard’s position as “institutional dementia.”
The Mechanism Behind the Madness
Vanguard’s involvement with MicroStrategy isn’t a deliberate endorsement of Bitcoin or the company’s strategy. Instead, it stems from the passive nature of index funds, which are obliged to mirror the composition of the stock indices they track. As such, MicroStrategy finds itself included in several of Vanguard’s funds, such as the Total Stock Market Index Fund (VITSX) and the Vanguard Growth ETF (VUG). This comes at a time when Coinbase, Strategy, and other Bitcoin-related stocks have soared, highlighting the volatile yet potentially lucrative nature of crypto investments.
MicroStrategy, led by the indefatigable Michael Saylor, has embraced Bitcoin with fervor, acquiring more than 600,000 BTC, now valued at around $72 billion. The company’s stock has become a proxy for Bitcoin exposure, especially during the years when the U.S. had not yet approved spot Bitcoin ETFs. In a recent development, Strategy revealed a $4.2 billion stock sale, underscoring the financial maneuvers companies are making in response to crypto market dynamics.
Yet, Vanguard’s stance on direct Bitcoin investments remains unchanged. Even with the appointment of Salim Ramji as CEO in May last year, a figure some hoped would usher in a new era of crypto-friendliness, the firm has remained steadfast in its opposition. “I think it’s important for firms to have consistency in terms of what they stand for and the products and services they offer,” Ramji stated post-appointment.
The Broader Crypto Context
Vanguard’s hesitancy contrasts sharply with the successes of competitors like BlackRock, whose iShares Bitcoin Trust (IBIT) rapidly became the fastest ETF to manage over $80 billion in assets. As the cryptocurrency market continues its rollercoaster ride of volatility and innovation, institutional attitudes toward digital assets are under scrutiny.
For Vanguard, the juxtaposition of holding such a significant stake in a company synonymous with Bitcoin while maintaining an anti-Bitcoin ETF stance raises questions about the firm’s future direction. Will Vanguard eventually warm to the idea of direct cryptocurrency investments, or will it maintain its current course, rooted in traditional finance?
Looking Ahead
As the financial world watches Vanguard’s next moves with bated breath, the implications for the broader cryptocurrency market are profound. Could Vanguard’s substantial stake in MicroStrategy signal a shift in its investment philosophy, or is this merely a quirk of passive fund management? The answers remain as volatile as the crypto market itself, leaving investors and analysts alike to ponder the future.
One thing is certain: in the dynamic world of cryptocurrency, few things are predictable, and Vanguard’s latest chapter in the crypto saga is a testament to this ever-evolving narrative.
Source
This article is based on: Anti-Bitcoin Vanguard Might Be the Largest Institutional Holder of MSTR Stock
Further Reading
Deepen your understanding with these related articles:
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- Crypto funds post $3.7B inflows as Bitcoin soars to new highs
- BlackRock iShares Bitcoin ETF surpasses 700K Bitcoin
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
