Investment giant Vanguard has developed indirect exposure to Bitcoin’s price movements through its passive index funds, despite publicly avoiding direct cryptocurrency products.
Vanguard’s funds tracking major market indices hold shares of Strategy, a company maintaining substantial Bitcoin reserves. This position creates a passive crypto link as Strategy’s stock value closely mirrors Bitcoin’s market performance.
The arrangement boosts Vanguard’s assets under management (AUM) and generates revenue streams tied to crypto market fluctuations, contrasting with the firm’s avoidance of spot Bitcoin ETFs and public skepticism toward direct cryptocurrency investments.
Critics including VanEck’s Matthew Sigel describe this contradiction as ‘institutional dementia,’ highlighting tensions between Vanguard’s revenue-driven positions and its cautious public stance.
Vanguard may consider more direct crypto integration in the future depending on market evolution, though it currently maintains a passive index strategy anchored to traditional investments.