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Vanguard calls Bitcoin immature, then becomes top shareholder of Bitcoin proxy Strategy
In a stunning turn of events, Vanguard Group has publicly criticized Bitcoin as “immature” while simultaneously becoming the largest shareholder in Strategy, a company that is heavily invested in the cryptocurrency.
Despite its anti-crypto stance, Vanguard now holds over 20 million shares, representing nearly 8% of Strategy’s outstanding Class A common stock. This move raises questions about the investment giant’s intentions and whether it has reconsidered its earlier views on Bitcoin.
Strategy’s co-founder, Michael Saylor, has welcomed Vanguard’s massive position, calling it a “powerful signal” of institutional backing for Bitcoin and Bitcoin treasury strategies. He emphasized that traditional finance is increasingly recognizing Bitcoin’s legitimacy.
Vanguard’s decision to invest in Strategy, which is heavily invested in Bitcoin, marks a significant shift in the investment giant’s stance on cryptocurrency. Despite its earlier criticism, Vanguard has reportedly become the largest shareholder in Strategy, indicating a stark contrast between its public views and private actions.
The irony of Vanguard’s position highlights the increasing institutional recognition of Bitcoin’s value as an asset class. Notably, JPMorgan CEO Jamie Dimon, another vocal critic of Bitcoin, has announced that his bank will allow clients to buy the crypto asset, although it will not offer custody services.
It remains unclear what triggered this sudden change in Vanguard’s stance on Bitcoin. The investment giant has built its business around index funds that sometimes force it to hold stocks linked to assets it may not particularly like, including Strategy and its massive Bitcoin holdings.
Vanguard’s massive investment in Strategy has pushed the stock price up, with shares surging about 3% intraday following news of their latest 4,225 Bitcoin purchase. This move solidifies their position as the largest shareholder, demonstrating a significant increase in Bitcoin treasuries and institutional investments in the cryptocurrency.
As Bitcoin continues to gain traction and recognition from mainstream financial institutions, it is essential for regulators and investors alike to understand the implications of such investments and the potential risks they pose.
Source: cryptobriefing.com
