Vanguard May Soon Gain Bitcoin Exposure via Gamestop's BTC Reserve

Vanguard may soon gain indirect bitcoin exposure through Gamestop’s BTC reserve plan, challenging its long-held stance that digital assets lack intrinsic value or stability.

Financial giant Vanguard Group may soon have indirect exposure to bitcoin through its holdings in Gamestop (NYSE: GME), marking an unexpected twist in the company’s traditionally cautious approach to cryptocurrency.

Several moves by Gamestop, a company in which Vanguard is among the largest shareholders, have converged to create this unusual situation.

As the top institutional stakeholder in Gamestop, Vanguard’s involvement follows the retailer’s unveiling of a strategic shift toward bitcoin.

On March 26, Ryan Rasmussen, Head of Research at asset management firm Bitwise, noted the development in a post on social media platform X.

“Amazing to see Vanguard buying bitcoin via Gamestop.”

Rasmussen’s comment was in response to Bitwise’s chief investment officer, Matt Hougan, who pointed out that Vanguard is Gamestop’s largest shareholder.

Good point, Ryan. As of Q4 2023.

But more importantly, surely no-one at Vanguard would talk about Bitcoin having ‘no role’ in long-term portfolios.

This quote from Duncan Burns, Head of Investments & Head of Equity Index Group for Asia-Pacific at Vanguard Australia, appeared in December 2024. It was in response to a question from Financial Times.

— Matt Hougan (@Matt_Hougan) March 26, 2024

Gamestop revealed a strategic bitcoin reserve plan last week and announced plans to raise funds for it through a convertible bond offering. The company did not disclose how much bitcoin it intends to acquire or the timeline for implementation.

The move signals a broader entry into digital assets and aligns Gamestop with other public companies, such as Microstrategy—now rebranded as Strategy—and Tesla, that have adopted bitcoin as a treasury reserve asset.

Vanguard’s indirect connection to bitcoin through Gamestop stands in contrast to its established position on digital assets. While other asset managers, including Blackrock and Fidelity, have embraced cryptocurrency through the launch of bitcoin and ether spot exchange-traded funds (ETFs), Vanguard has opted to stay on the sidelines.

In December 2024, Vanguard reaffirmed its anti-bitcoin stance, highlighting the lack of intrinsic value or stability in digital assets.

Duncan Burns, head of investments and head of Equity Index Group for Asia-Pacific at Vanguard Australia, stated that bitcoin had no role in long-term portfolios and warned of potential investor losses.

Moreover, CEO Salim Ramji, despite prior crypto ETF experience at Blackrock, confirmed that Vanguard would not offer crypto ETFs, emphasizing a focus on core strengths like active fixed income and cost efficiency.