Vanguard Becomes Largest Shareholder in Bitcoin Proxy Strategy

Vanguard Group, historically skeptical of Bitcoin and digital assets, has become the largest shareholder in Strategy, a company known for holding significant Bitcoin reserves. Despite previously labeling Bitcoin as an "immature asset class" unsuitable for long-term investors, Vanguard now owns nearly 8% of Strategy's Class A common stock through its various index funds and ETFs. This investment reflects the inherent nature of index fund management, which requires holding all stocks in the tracked indexes regardless of individual asset preferences. Strategy's co-founder Michael Saylor welcomed Vanguard's stake as a strong signal of growing institutional acceptance of Bitcoin, underscoring the evolving sentiment in traditional finance. Strategy's shares have surged approximately 55% this year, bolstered by recent large Bitcoin purchases that increased its holdings to over 600,000 BTC. The situation highlights a broader paradox where major financial institutions, including Vanguard and JPMorgan, are increasingly engaging with cryptocurrencies despite public skepticism.