Vanguard’s Crypto Curiosity

The Morning Edition delivers a curated digest of crypto news, penned by Tyler Warner. The opinions presented are his own and don’t reflect Decrypt’s official stance. Subscribe to the Morning Edition on Substack.

Greetings!

Key Headlines:

• Leading cryptocurrencies experienced a weekend surge; Bitcoin surpasses $112,000 once again.
• Rumors suggest Vanguard is evaluating the possibility of offering crypto ETF access to its user base of 50 million.
• Regulatory bodies, SEC and FINRA, launch probes into Digital Asset Treasuries (DATs) for potential insider trading violations.
• Tether reportedly seeks funding at a valuation of $500 billion; XPL reaches $13 billion valuation in its initial trading days.
• Hypurr NFTs debut with a starting price of $65,000 and exceed $60 million in trading volume on the first day.

🛡️ Vanguard Considers Crypto ETFs

The second-largest global asset management entity is exploring options to allow its American customers to invest in cryptocurrency Exchange Traded Funds.

Resistance to crypto is diminishing.

📌 Key Developments

Last week, Crypto in America indicated that Vanguard is evaluating the possibility of granting access to select spot crypto ETFs for its brokerage account holders.

This represents a significant shift from their prior stance in 2024, where the platform prohibited access to spot Bitcoin ETFs.

While no final verdict or detailed product listing is available, discussions highlight persistent customer interest and the competitive landscape where most major counterparts already offer this capability.

Notably, Salim Ramji, the CEO of Vanguard, previously held a position at BlackRock and was in charge of the debut of their Bitcoin ETF, IBIT, which became one of the most triumphant ETF launches ever.

With assets under management (AUM) reaching nearly $10 trillion and serving over 50 million investors worldwide, even a carefully managed introduction of crypto ETFs could have substantial effects on ETF liquidity.

🗣️ Voices in the Industry

“They are taking a very structured and deliberate approach, cognizant of the evolving landscape since 2024.” – Source quoted by Crypto in America

“Vanguard, the world’s second-largest asset manager, is reportedly considering allowing clients to invest in crypto ETFs on their platform. By delaying their entry, they have effectively ‘shielded’ clients from +150% gains on $BTC since the ETFs became available.” – Satoshi Stacker on X

🧠 Significance

Should Vanguard enable cryptocurrency ETF access, even with limitations, it will create a significant stream of ongoing investments into leading cryptocurrencies.

This translates to enhanced secondary-market liquidity, greater adoption in retirement accounts, and more “passive” exposure from long-term investors who previously needed to seek investments elsewhere.

Merely 1% of $11 trillion equals $110 billion in inflows (and potentially a major initial portfolio reallocation).

That is a colossal sum.

It also signifies a symbolic validation: a firm that once deemed crypto “inappropriate for long-term portfolios” would be acknowledging its enduring presence alongside traditional assets like stocks and bonds.

The last bastions of resistance are giving way.

The crypto upswing is on the horizon…

🌎 Crypto and Web3 News

A selection of noteworthy headlines from the Crypto and Web3 sphere:

Corporate Finance / ETFs

• The SEC and FINRA have launched investigations into Digital Asset Treasuries, focusing on potential insider trading.
• SharpLink (SBET) plans to offer tokenized stock through Superstate’s Opening Bell.

Memes

💰 Token, Airdrop, and Protocol Tracker

A summary of significant token, protocol, and airdrop related news from the past week:

• Plasma’s XPL mainnet and token debuted on major exchanges with a market capitalization surpassing $2.4 billion (though down 9% from yesterday at $1.29).
• Aster topped all perps dexes in volume and fees over the past week, outperforming even Tether in fee generation.
• ApeX (APEX) surged approximately 280% last week, fueled by substantial purchases from whale investors and hints from the development team, following the announcement of a 25M APEX rewards/airdrop program and a roadmap.
• Punk Strategy’s PNKSTR token reached $90 million and a new all-time high after unveiling plans to launch a range of new NFT strategy tokens covering collections such as Squiggles, CrypToadz, and others.

🤖 AI and Crypto

A dedicated section for news in the Artificial Intelligence sector related to cryptocurrency:

• Overall market capitalization increased by 2% to $16.9 billion, with leading tokens trending positively.
• FARTCOIN (+5%), VIRTUAL (+3%), TIBBIR (-5%), aixbt (+2%) & ai16z (+2%) showed varied performance.
• DOGEAI (+18%) and TIBBIR (+14%) were the top gainers in the sector.

🚚 NFT Market Update

Key headlines and developments from the world of Non-Fungible Tokens:

• ETH NFT market leaders experienced a slight decline on the week, in spite of growing momentum in NFT strategy tokens; Punks down 3% at 47.6 ETH, Pudgy Penguins down 2% at 10.23 ETH, BAYC down 3% at 9.13 ETH.
• Kaito Genesis NFTs (+170%), goblins (+260%), and GVC (+50%) emerged as notable top gainers.
• Hypurr NFTs, distributed via airdrop to early Hyperliquid platform users, achieved a 1,390 HYPE floor ($65,000) on impressive daily trading volume of $60 million.