Prominent investment firm Vanguard is anticipated to reconsider its current anti-Bitcoin position in the near future. However, recent actions by the asset manager reveal a deepening commitment to this stance.
Eric Balchunas, a senior analyst at Bloomberg, anticipates that Vanguard’s traditionally anti-crypto stance may gradually ease in the coming years.
Vanguard’s Anti-Bitcoin Stance to Soften
Balchunas, acknowledging Vanguard’s historically steadfast position against cryptocurrencies as “on brand,” suggested a potential shift in philosophy.
He pointed to the growing imperative for wealth growth, positing that Vanguard’s pursuit of diversified investments may lead to a reconsideration of alternative asset classes, such as Bitcoin and other cryptocurrencies.
“Vanguard’s anti-bitcoin ETF stance is totally on brand and would’ve made Bogle proud. That said, I think they will soften in the coming years as they build their advisory business, they’ll need to have access to alternative asset classes,” Balchunas added.
Read more: Everything BlackRock CEO Larry Fink Said About Bitcoin
Recently, Vanguard drew attention for its decision to restrict customer access to the newly launched spot Bitcoin ETFs. BeInCrypto reported that many Vanguard customers have already redirected their funds to alternative firms in response to these restrictions.
Discontinuing Cryptocurrency Products
Despite industry trends showcasing increased interest in cryptocurrencies, Vanguard is moving in the opposite direction by announcing plans to remove Bitcoin futures ETFs from its platform.
A Vanguard spokesperson reportedly said the firm will no longer accept purchasing cryptocurrency products, including Bitcoin futures ETFs. This decision will allow it to refocus on products that align more closely with its core values.
“In addition to spot Bitcoin ETFs not being available for purchase on the Vanguard platform, effective immediately, Vanguard will no longer accept the purchase of cryptocurrency products, including Bitcoin futures ETFs. This change allows us to focus on offering a core set of products and services consistent with our commitment to serve the needs of long-term investors,” a spokesperson for Vanguard said.
Vanguard’s current stance echoes its historical skepticism towards cryptocurrencies. In 2017, founder Jack Bogle described Bitcoin as a “plague,” underscoring the firm’s enduring reservations towards crypto.
| Top Institutional MicroStrategy Holders | Shares | Date Reported | % Out | Value |
| Capital International Investors | 1,554,039 | Sep 29, 2023 | 11.37% | 754,532,553 |
| Vanguard Group Inc | 1,126,980 | Sep 29, 2023 | 8.24% | 547,182,598 |
| Blackrock Inc. | 906,714 | Sep 29, 2023 | 6.63% | 440,236,847 |
| FMR, LLC | 489,038 | Sep 29, 2023 | 3.58% | 237,442,619 |
| Morgan Stanley | 303,358 | Sep 29, 2023 | 2.22% | 147,289,409 |
| State Street Corporation | 244,261 | Sep 29, 2023 | 1.79% | 118,596,043 |
| Geode Capital Management, LLC | 241,621 | Sep 29, 2023 | 1.77% | 117,314,243 |
| Northern Trust Corporation | 108,075 | Sep 29, 2023 | 0.79% | 52,473,654 |
| Shaolin Capital Management LLC | 104,500 | Sep 29, 2023 | 0.76% | 50,737,884 |
| Susquehanna International Group, LLP | 102,169 | Sep 29, 2023 | 0.75% | 49,606,114 |
However, in contrast to its skepticism towards cryptocurrencies, the company has substantially invested in MicroStrategy shares. MicroStrategy, recognized as the foremost public holder of Bitcoin, possesses approximately 190,000 BTC, amounting to a nearly $6 billion valuation.
Read more: Who Owns the Most Bitcoin in 2024?
Meanwhile, Yahoo Finance data shows that Vanguard currently holds over 1 million MSTR shares, worth $547 million, as of September 2023. This makes it the second-largest institutional shareholder in the company, boasting an 8.24% ownership share.
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