Vanguard, the $13 trillion asset manager known for its conservative stance toward cryptocurrencies, has added indirect Bitcoin exposure through its passive investment vehicles. The firm’s FTSE All-World ex-US Small-Cap ETF (VSS) reported for the first time a stake in Metaplanet, recognized as Japan’s leading corporate Bitcoin holder, with 4.5 million shares valued at about $7.5 million. This mark represents a shift, as mainstream index funds are channeling capital into the digital asset ecosystem without holding Bitcoin directly.
Major Passive Fund Positions Emerge
Vanguard’s involvement in Metaplanet extends across several funds. According to data from The Block’s treasury tracker, the Vanguard Total International Stock Index Fund (VGTSX) currently owns 15.64 million Metaplanet shares, worth approximately $53.5 million. Meanwhile, the FTSE Japan ETF (VJPN) has accumulated 704,500 shares for about $2.1 million.
These holdings have grown automatically as Metaplanet’s market capitalization increased and the company became eligible for inclusion in major FTSE indices. Other large passive managers such as iShares and State Street are likely tracking similar benchmarks, potentially holding comparable positions.
Vanguard’s Approach and Metaplanet’s Bitcoin Strategy
Despite being the world’s second-largest asset manager, Vanguard has opted not to introduce a US spot Bitcoin ETF, a path taken by rivals such as BlackRock and Fidelity. Vanguard attributes this decision to its investment philosophy, which emphasizes traditional asset categories.
Metaplanet, which trades under the code 3350 in Tokyo and MTPLF OTC in the United States, has earned comparisons to MicroStrategy for its aggressive Bitcoin treasury strategy. At the end of September, Metaplanet reported holding 44,000 BTC following sales of 10,000 BTC and additional purchases of 11,000 BTC during the third quarter. This position makes Metaplanet the second-largest publicly listed corporate Bitcoin holder.
Metaplanet CEO Simon Gerovich has set an ambitious target for the firm, aiming to allocate up to 90% of company assets to Bitcoin, a move seen as significant for integrating digital assets into mainstream portfolios.
Index Mechanics Reshape Portfolio Exposure
With the expansion of Metaplanet and similar firms, many investors in Vanguard products such as VSS—including those holding target-date funds—now possess indirect exposure to Bitcoin through traditional equity holdings. The mechanics of index fund inclusion mean these treasury companies are entering core diversified portfolios, widening retail and institutional participation in digital asset markets outside of dedicated crypto funds.
The trend toward passive flows enabling indirect Bitcoin exposure has accelerated following the US Securities and Exchange Commission’s approval of spot Bitcoin ETFs in January 2024. Institutional adoption continues to grow, with publicly traded treasury companies now holding over 300,000 BTC primarily in mid- and small-cap equities.
Japan’s Financial Services Agency recognizes Bitcoin as legal property, permitting strategies like Metaplanet’s. As index inclusion rules track rising market capitalizations, global passive funds are compelled to purchase more shares, creating a regular channel from traditional finance into the Bitcoin economy.
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Automatic index inclusion is bringing Bitcoin treasury companies into mainstream global portfolios, offering indirect digital asset exposure to a growing number of traditional investors.
