Vanguard’s Bold Crypto Play: Inside Their Unexpected Digital Asset Strategy

Wall Street's quiet giant just made a power move—while everyone was busy arguing about Bitcoin ETFs, Vanguard quietly built a crypto exposure strategy that's turning heads.

Here's how the anti-hype fund manager is playing the digital asset game.

No moonboys, no memecoins—just cold, calculated institutional positioning that's got crypto natives and traditional finance suits equally intrigued.

Because nothing says 'serious money' like a 50-year-old index fund company outflanking crypto bros at their own game—while keeping expense ratios under 0.10%, naturally.

$119,874 ETFs. Yet, recent developments indicate that Vanguard has become the largest institutional shareholder of Strategy, a technology company highly invested in Bitcoin reserves.

ContentsVanguard’s Approach to CryptocurrenciesStrategy (MSTR) and Vanguard

Vanguard’s Approach to Cryptocurrencies

According to Bloomberg, Vanguard now owns over 20 million shares in Strategy, representing more than 8% of the company’s total shares. This equates to approximately $9.26 billion, surpassing former major institutional shareholder Capital Group.

Vanguard’s position in Strategy isn’t a direct investment decision but rather a result of the strategic holdings within its index funds. The company’s Total Stock Market Index Fund, Vanguard Extended Market Index Fund, and Vanguard Growth ETF automatically hold Strategy shares in their portfolios.

Interestingly, this occurs even as Vanguard maintains its cautious stance on cryptocurrencies and publicly declares reluctance to offer bitcoin ETFs to its clients. Despite this, clients express robust interest in MSTR shares directly linked to BTC through Vanguard.

Strategy (MSTR) and Vanguard

The funds Vanguard manages follow major stock indices, investing in all companies meeting their criteria. Thus, companies like Strategy automatically enter Vanguard funds when included in an index. Vanguard’s exposure to Strategy emerges from automatic portfolio distributions rather than deliberate strategy.

Bloomberg analyst Eric Balchunas comments, “It’s as if there’s a divine sense of humor. Vanguard chose this life. When managing an index fund, you must hold shares you might not favor or approve of, such as cryptocurrencies.”

Matthew Sigel, Head of Research at VanEck Digital Assets, critically notes, “Being indexed to something you openly mock is not a strategy.”

Under Chairman Michael Saylor, Strategy has positioned itself over the recent years as a vehicle for Bitcoin investment, amassing over 600,000 Bitcoins since 2020. These Bitcoins are currently valued at approximately $72 billion.

Vanguard continues to maintain its distance from crypto assets, not offering access to spot Bitcoin ETFs for its clients. Despite this, competitors like BlackRock capture significant interest and volume with funds like the iShares Bitcoin Trust.

Vanguard’s leading institutional stake in Bitcoin-focused companies through passive fund management underscores how index-based investment models can yield unpredictable results. Investors and industry professionals closely monitor both the corporate ownership dynamics and the role of digital assets.

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