According to Cointelegraph, Vanguard, one of the leading investment management firms globally, has emerged as the largest institutional shareholder of MicroStrategy (MSTR), a company renowned for its significant Bitcoin holdings. Data from the investment research platform Intel reveals that Vanguard has acquired over 20 million shares of MicroStrategy, accounting for approximately 8% of the company's outstanding Class A common stock. This acquisition provides Vanguard with indirect exposure to more than 200,000 Bitcoin held by MicroStrategy, marking a 26.3% increase in holdings between January and April 2025.
Vanguard's investment strategy includes exposure to the Vanguard Total Stock Market Index Fund, which incorporates MicroStrategy as part of its extensive U.S. equity allocation. Additionally, MicroStrategy's stock is featured in numerous Vanguard mutual funds and exchange-traded funds (ETFs) that track mid-cap benchmarks. Despite becoming the largest institutional shareholder of MicroStrategy, Vanguard has maintained a cautious stance on Bitcoin and cryptocurrencies. The firm has consistently advised clients about the volatility associated with cryptocurrencies and has refrained from offering access to spot Bitcoin ETFs, unlike some of its competitors.
Vanguard's CEO, Salim Ramji, reiterated the company's cautious approach in a May interview with Bloomberg TV. When asked about accommodating clients interested in adding Bitcoin to their portfolios, Ramji declined, emphasizing Vanguard's commitment to long-term dependability rather than following market trends. In a separate interview with ETF.com, Ramji stated that Vanguard is not in the business of making speculative bets on assets like Bitcoin, aligning with the investment philosophy the company has upheld for over five decades.
Meanwhile, asset manager BlackRock has witnessed significant success with its iShares Bitcoin Trust ETF (IBIT), which has quickly become the company's most profitable ETF. According to Bloomberg Senior ETF analyst Eric Balchunas, the IBIT is on track to reach $100 billion in assets under management soon. Balchunas highlighted the quirks of passive investing, noting that index funds require ownership of all stocks within the index, regardless of personal preferences. He remarked that Vanguard's substantial exposure to MicroStrategy, a company closely associated with Bitcoin maximalism, underscores the unpredictable nature of passive investing. This development serves as a reminder of the complexities and unexpected outcomes that can arise in the world of investment management.
