Vanguard reversed its long-held negative stance toward crypto-related products and will allow ETFs and mutual funds that primarily hold BTC, ETH, XRP, or SOL to trade on its platform from Tuesday, Bloomberg first reported.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Happy Tuesday! The crypto market rebounded above $3 trillion this morning as bitcoin retraced Monday’s dump to climb back above $91,000 amid the “Vanguard effect” and rising Fed rate cut odds.
In today’s newsletter, Grayscale predicts new bitcoin highs in 2026, Vanguard launches crypto ETF trading, Bank of America backs a 4% crypto allocation, and more.
Meanwhile, BlackRock’s Larry Fink and Rob Goldstein say tokenization could do for finance what the early internet did for information. Plus, Kraken is set to acquire xStocks issuer Backed Finance in its own tokenization push.
P.S. Don’t forget to check out The Funding, a biweekly rundown of crypto VC trends. It’s a great read — and just like The Daily, it’s free to subscribe!
Grayscale predicts new bitcoin highs in 2026, dismisses 4-year cycle view
Grayscale Research challenged the four-year cycle thesis in a new report and predicted that bitcoin is on track to set new all-time highs in 2026.
* Analysts at the firm argue that bitcoin’s recent 32% drawdown fits within normal bull-market volatility rather than a multi-year downturn, noting that this cycle lacks the parabolic retail-driven surge that historically precedes major reversals.
* Unlike prior cycles, the current market structure sees institutional money concentrated in exchange-traded products and digital asset treasuries instead of retail activity on spot exchanges, they added.
* Grayscale also cited supportive macro conditions, including potential U.S. rate cuts and bipartisan crypto legislation, as offering further tailwinds in the year ahead.
* BitMine Chair Tom Lee is among those echoing this bullish view, arguing that fundamentals outpace prices and anticipating a new bitcoin high as early as January.
Vanguard allows clients to trade funds holding crypto like BTC, ETH, XRP and SOL
Vanguard reversed its long-held negative stance toward crypto-related products and will allow ETFs and mutual funds that primarily hold BTC, ETH, XRP, or SOL to trade on its platform from Tuesday, Bloomberg first reported.
* The move came in response to mounting retail and institutional client demand, with the firm weighing changes to its crypto-product policies since at least September.
* Vanguard executives said crypto funds have proven resilient through volatility and that servicing infrastructure has matured enough to support them.
* The decision opens crypto exposure to more than 50 million Vanguard brokerage clients and comes as analysts expect a surge of new crypto ETF launches in the months ahead.
Bank of America backs 4% crypto allocation cap, ending adviser restrictions and adding Bitcoin ETF coverage
Bank of America will reportedly let Merrill, Private Bank, and Merrill Edge clients allocate 1% to 4% of portfolios to crypto, ending years of adviser restrictions on proactively recommending crypto products.
* That limitation effectively sidelined more than 15,000 advisers during a period when demand for digital assets was accelerating.
* BoA’s CIO will also begin coverage of spot Bitcoin ETFs from BlackRock, Bitwise, Fidelity, and Grayscale starting Jan. 5, bringing crypto into its formal investment framework.
* Private Bank CIO Chris Hyzy said a small crypto allocation “may be appropriate” for clients comfortable with volatility, aligning BoA with peers like Morgan Stanley, BlackRock, and Fidelity.
Chainlink gets its first ETF as Grayscale’s GLNK begins trading
Grayscale was again in the news on Tuesday, launching the first Chainlink ETF after converting its $17 million Chainlink Trust into the newly listed GLNK on NYSE Arca.
* The investment firm said Chainlink’s oracle network is becoming core infrastructure for tokenization and DeFi as demand for verifiable data and cross-chain connectivity grows.
* Grayscale argues that accelerating tokenization will make secure off-chain data feeds essential, positioning Chainlink as the connective layer for asset creation and settlement.
* The launch expands Grayscale’s rapid ETF rollout, which now includes products tied to XRP, Dogecoin, and Solana, with a Zcash ETF application also pending.
AI agents pose immediate threat to smart contract security, Anthropic says
AI research company Anthropic found that advanced AI agents identified vulnerabilities in recent smart contracts that could have led to multimillion-dollar exploits, underscoring the growing threat autonomous systems pose to blockchain security.
* Anthropic warned that simulated exploit revenue is doubling every 1.3 months as AI becomes cheaper and more capable.
* Still, the firm stressed that the same technology can bolster defenses, noting that AI agents can also be deployed to patch vulnerabilities.
In the next 24 hours
* Eurozone PPI figures are due at 5 a.m. ET on Wednesday. U.S. mortgage data follow at 7 a.m.
* ECB President Christine Lagarde will speak at 8:30 a.m.
* BitMEX and Hivemapper are set for token unlocks.
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