Say no to Bitcoin, but Vanguard secretly holds trillions in crypto assets! Here’s why

Jakarta, Pintu News – The phenomenon of indirect exposure to crypto is now in the spotlight after it was revealed that Vanguard, one of the world’s largest asset managers, has a large exposure to Bitcoin (BTC) through shareholdings in cryptocurrency-focused companies. This finding contradicts the company’s official policy of denying its clients access to Bitcoin ETF products directly.

Vanguard and Accidental Exposure to Crypto

Vanguard recently became the largest shareholder in MicroStrategy (MSTR), a software company widely recognized for its treasury reserves in Bitcoin. Vanguard now owns more than 20 million shares of MicroStrategy, equivalent to about 8% of the company’s class A shares. The investment value reaches US$ 9.3 billion, or equivalent to approximately Rp 152 trillion.

These holdings occur automatically through passive index products such as the Vanguard Total Stock Market Index Fund and 500 Index Fund. MicroStrategy’s shares are included in the portfolio because its weight in the Russell 1000 and S&P 500 indices has increased considerably due to the surge in the company’s own share price. Thus, even though Vanguard has closed its clients’ access to buying Bitcoin ETFs directly, they are still exposed to cryptocurrency price fluctuations through corporate channels.

Also Read: Bitcoin Price Has Skyrocketed, Here Are 5 Tips to Choose a Safe and Reliable Crypto Exchange!

Passive Strategies, Impact of Crypto Volatility

MicroStrategy shares have surged more than 85% since the start of the year, outperforming even the rise in Bitcoin (BTC) price which has ‘only’ risen 62% over the same period. This is because many investors treat MicroStrategy as a leveraged proxy for crypto price movements, particularly BTC. By owning a stake in the company, Vanguard – indirectly – has exposure to the nearly 580,000 BTC that MicroStrategy manages, valued at around US$68 billion or around Rp 1,111 trillion.

This kind of exposure reflects how passive indexing and rebalancing mechanisms can put conservative asset managers in sectors they previously wanted to avoid. MicroStrategy stocks are automatically included in index product portfolios when their valuation and market capitalization spike, meaning that Vanguard investors share in crypto volatility without buying BTC directly.

Different Policies, Same Impact

Since 2017, Vanguard, through its founder Jack Bogle, has strongly warned investors to stay away from Bitcoin. Even when spot Bitcoin ETFs were approved in the US, Vanguard immediately blocked retail clients’ access to such products on precautionary grounds.

However, the dynamics of stock market indices still put Vanguard at risk from crypto, even more than some crypto-focused funds. Now, whether Vanguard will revisit its Bitcoin ETF ban policy remains a big question mark, given that its clients have already been impacted by the ups and downs of crypto prices through their stock portfolios.

Impact and Notes for Investors

Vanguard’s story is a clear example of how exposure to cryptocurrencies is becoming increasingly inevitable, especially for large institutions that manage index funds on a passive basis. For retail investors, it is important to understand that crypto volatility and risk can arise even if investments are not made directly into digital assets, but rather through capital market instruments such as shares of companies that hold BTC as treasury assets.

As MicroStrategy’s weighting in large indices continues to rise, crypto exposure could increase-even for investors who think they’ve never touched cryptocurrency.

Also Read: Bitcoin Price Breaks ATH, 5 Smart Investment Strategies to Deal with Market Volatility

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Crypto News Flash. Vanguard Says No to Bitcoin (BTC) for Clients Yet Quietly Holds Billions Through Strategy Exposure. Accessed July 17, 2025.