Asset management giant Vanguard, despite its public distancing from the cryptocurrency market, has significant exposure to Bitcoin through its large stake in MicroStrategy (MSTR). As per Yahoo Finance data, Vanguard Group is the second-largest institutional shareholder in MicroStrategy, holding over 1,126 million MSTR stocks, which equates to 8.24% of ownership as of September 2023.
MicroStrategy’s stock is included in several of Vanguard’s mutual funds, such as the Vanguard Total Stock Market Index Fund, Vanguard Small-Cap Index Fund, Vanguard Extended Market Index Fund, and Vanguard Small-Cap Growth Index Fund. MicroStrategy has a substantial Bitcoin holding, having accumulated 189,150 BTC over the years, purchased at a combined cost of approximately $5.9 billion. This significant Bitcoin exposure has led some analysts to label MSTR as “essentially a leveraged Bitcoin ETF,” especially after the stock’s price soared in 2023 amid the Bitcoin ETF hype.
However, Vanguard has been cautious about its association with the crypto market. On January 11, while other asset managers were launching spot Bitcoin ETFs on major Wall Street exchanges, Vanguard blocked the purchase of such products. The company stated that these products did not align with its vision, emphasizing its focus on traditional asset classes like equities, bonds, and cash, which it considers the foundation of a well-balanced, long-term investment portfolio.
Despite this stance, Vanguard’s indirect but substantial Bitcoin exposure means that BTC price fluctuations are likely to impact its mutual funds and MSTR shareholdings. This also provides a way for its clients to gain exposure to cryptocurrency through the investment platform. The crypto industry is anticipating a surge in Bitcoin-related products in the coming months, including leveraged and short Bitcoin ETFs and crypto loans collateralized by Bitcoin.
As the crypto market continues to be volatile, experts are advising on how to safeguard crypto investments. This advice is particularly relevant for those with significant exposure to Bitcoin, like Vanguard, through their holdings in companies like MicroStrategy.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Yahoo Finance, Bitcoin OGs, MicroStrategy, Vanguard Group |
| Currencies | Bitcoin |
| Securities | MSTR (MicroStrategy) |
