GameStop’s Bitcoin reserve sparks Vanguard debate

Vanguard Group, a major institutional shareholder in Gamestop, may indirectly gain exposure to Bitcoin (CRYPTO:BTC) as the retailer reveals plans for a strategic Bitcoin reserve.

This development challenges Vanguard’s long-standing skepticism toward cryptocurrency, which it has consistently deemed speculative and unsuitable for long-term portfolios.

“Vanguard buying Bitcoin via Gamestop is amazing,” highlighted Ryan Rasmussen of Bitwise on social media.

His comment underscores the unusual nature of the situation, given Vanguard’s history of avoiding direct involvement with digital assets.

Matt Hougan, Bitwise’s chief investment officer, also pointed out that Vanguard is the largest shareholder in Gamestop.

Gamestop announced its Bitcoin reserve plan last week, aiming to raise funds through a convertible bond offering.

However, the company has not disclosed specific details regarding the volume or timeline for acquiring Bitcoin.

This move aligns Gamestop with other corporations like Tesla and MicroStrategy, which have adopted Bitcoin as treasury assets.

Vanguard’s indirect connection to Bitcoin contrasts sharply with its established stance.

The firm has repeatedly criticised cryptocurrency for its volatility and lack of intrinsic value.

In December 2024, Vanguard reaffirmed its position, stating that digital assets are speculative and pose risks to investors.

Duncan Burns from Vanguard Australia warned that Bitcoin does not belong in long-term portfolios and could lead to significant losses.

CEO Salim Ramji has also resisted crypto ETFs despite his prior experience with such products at BlackRock.

He emphasised Vanguard’s focus on core strengths like fixed income and cost efficiency rather than volatile asset classes like cryptocurrency.

Gamestop’s decision adds complexity to Vanguard’s cautious approach.

While competitors such as BlackRock and Fidelity have embraced crypto ETFs, Vanguard remains steadfast in avoiding them.

The firm prioritises traditional investments with predictable cash flows over speculative assets like Bitcoin.

At the time of reporting, the Bitcoin (BTC) price was $82,117.28.