Despite publicly criticizing Bitcoin, Vanguard benefits from the rising value of the cryptocurrency through assets linked to MicroStrategy.
Vanguard's Criticism of Bitcoin
Vanguard, one of the largest financial conglomerates, has repeatedly expressed its disdain for Bitcoin, labeling it as an 'immature' asset and stating that it is not suitable for long-term investors. Company representatives believe that Bitcoin has no inherent economic value.
Beneficial Assets: MicroStrategy Shares
Despite the criticism of Bitcoin, Vanguard holds 20 million shares of MicroStrategy, the largest corporate owner of Bitcoin. This makes Vanguard the largest shareholder of this company, raising questions about the conglomerate's contradictory position.
Ambiguous Strategies and Investment Approaches
Some experts, such as Matthew Sigel from VanEck, point out the oddity of the situation where Vanguard invests in assets they publicly criticize. 'Indexing into $9B of what you openly mock isn’t strategy. It’s institutional dementia,' Sigel noted on social media. Nonetheless, this investment is explained by the fact that MicroStrategy's shares are included in many tracked indices, such as Russell 1000.
Despite its negative comments on Bitcoin, Vanguard continues to benefit from the rise of MicroStrategy shares, raising doubts about the integrity of their investment strategy.
