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How Anti-Bitcoin Vanguard Became Strategy’s Biggest Investor
In a shocking turn of events, the world’s largest asset manager, Vanguard, has become the largest institutional investor in Strategy Inc., with over 20 million shares worth approximately $9.26 billion. This unexpected shift raises questions about the company’s stance on cryptocurrency investments.
The surprising move comes as a stark contrast to Vanguard’s publicly stated position on bitcoin and cryptocurrency. The firm has consistently criticized bitcoin as a speculative asset lacking fundamental value, emphasizing its commitment to “client-focused innovation, not mimicking competitors.” CEO Salim Ramji has reinforced this stance, stating that the company will not pursue a crypto ETF.
Despite these public statements, Vanguard’s index funds have inadvertently become exposed to bitcoin through their holdings in Strategy Inc. This development highlights the challenges faced by passive investment managers in maintaining consistent messaging while following index mandates.
The inclusion of Strategy Inc. in major indices has made it impossible for Vanguard to avoid exposure while maintaining its passive investment approach. The company’s rapid growth and bitcoin accumulation strategy have increased its market capitalization and index weighting, ultimately leading to this unexpected outcome.
Vanguard’s position as the largest institutional investor in Strategy Inc. raises eyebrows given its anti-crypto stance. This move will likely be scrutinized by market participants seeking clarity on Vanguard’s investment strategies.
Source: coincentral.com
