Vanguard Opens Trading for Crypto Funds

Tokenization’s Early-Internet Era | Aave Weighs Multichain Pullback

Marco Manoppo & Karon Pangestu
December 03, 2025

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Good Morning.

Vanguard just made a surprising U-turn. After years of keeping crypto out, the $11T giant is finally letting clients trade funds holding Bitcoin, Ethereum, Solana, and XRP. The decision comes after growing pressure from both everyday investors and big institutions.

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In Today's Email:

What Matters: Vanguard Opens Trading for Crypto Funds 👀
Case Study: Tokenization’s Early-Internet Era 🔎
Governance & Features: Aave Weighs Multichain Pullback 👻

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Narratives: Legacy catch-up

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WHAT MATTERS

Vanguard Opens Trading for Crypto Funds

State of play: Vanguard is making a big reversal. After years of resisting crypto, the world’s second largest asset manager will now let clients trade ETFs and mutual funds that mainly hold digital assets like Bitcoin, Ethereum, XRP, and Solana.

Bloomberg says the shift comes after strong demand from both retail and institutional investors.
The firm had previously refused to offer even the spot Bitcoin ETFs launched in early 2024.
CEO Salim Ramji said in August 2024 that crypto ETFs weren’t in Vanguard’s plans. That stance has now changed.
Vanguard says crypto funds have proven they can handle volatility and stay liquid, and that the processes for servicing them have matured.
Starting Tuesday, these products will be available on its platform, which serves over 50M brokerage customers managing more than $11T.

Why it matters: Vanguard joining the crypto lane signals that digital assets are now part of the mainstream playbook.

Our take: With ETF approvals expanding and analysts expecting more than 100 new crypto ETFs in the next six months, crypto exposure continues to become more mainstream.

For builders and investors: Expect more ETF inflows, more assets getting listed, and more demand from TradFi.

CASE STUDY

Tokenization’s Early-Internet Era

Fink & Goldstein / IMG: The Economist

BlackRock’s Larry Fink and Rob Goldstein say tokenization is hitting the same kind of early stage the internet was in during the mid-90s. They argue that moving asset ownership onto digital ledgers can make markets faster, cheaper, and more transparent.

They point to a 300% surge in real-world asset tokenization over the last 20 months as proof that the shift is already accelerating.
BlackRock highlights instant settlement, lower costs, and the ability to break up illiquid assets into smaller, accessible units as key advantages.
The executives say the industry initially overlooked tokenization because it was buried under crypto hype, but TradFi now sees its true potential.
BlackRock is already experimenting with tokenized products, including its BUIDL on-chain money market fund and dominant Bitcoin and Ethereum ETFs.
Fink and Goldstein see tokenization as a bridge between tradfi and digital-first players, eventually letting investors hold everything from stocks to stablecoins.

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INSIGHTS

Bank of America Endorses 1%–4% Crypto Allocation

Bank of America is officially telling its wealth clients that a 1% to 4% crypto allocation is reasonable, marking a major shift in its long-standing stance.

The bank will also start CIO coverage of four spot BTC ETFs from BlackRock, Bitwise, Fidelity, and Grayscale starting January 5, 2026.
This move ends a policy that blocked over 15,000 Merrill and Private Bank advisers from proactively recommending crypto products.
Now BoA joins peers like Morgan Stanley, BlackRock, and Fidelity, all of which have recently set formal crypto allocation bands.

FEATURES & GOVERNANCE UPDATE

Aave Weighs Multichain Pullback

Aave’s community is debating whether to scale back its multichain push. A temp check from the Aave Chan Initiative suggests shutting down low-revenue deployments on zkSync, Metis, and Soneium, saying they no longer justify the costs or risk.

Aave currently runs on at least 18 chains, but several produce almost no income.
Metis generates about $3,000 a year, Soneium about $50,000, while Ethereum mainnet brings in over $142M.
ACI also proposes a $2M annual revenue floor for future deployments, plus stricter requirements for smaller chains.
The idea has broad support so far, though some community members worry that deprecating too many chains could shrink Aave’s footprint.
Others argue exceptions should be made for networks with strong user bases or strategic value.

Other notable feature updates:

Klarna introduced KlarnaUSD.
Ethena partnered with Nunchi.
Jupiter Lend launches Refinance.
Supra launched its MultiVM Testnet.
Lighter added equities perps with 10x leverage.
Monad launched its Ethereum-compatible mainnet.
HyperliquidX activated “growth mode” for HIP-3 deployers.

QUICK BITES

Vanguard opens trading for crypto funds.
Aave DAO mulls pulling back multichain strategy.
Bank of America backs 4% crypto allocation cap.
EU banks pushes for euro-pegged stablecoin by 2027.
UK takes ‘massive step,’ passing property laws for crypto.
UK considers ban on crypto donations to political parties.
Kalshi raises $1B at $11B valuation after best volume month.
Fink and Goldstein say its tokenization’s early-internet moment.
Astria sunsets its shared sequencer network after raising $18M.
Kraken to buy Backed Finance in tokenization push ahead of IPO.
FDIC acting chair says framework for stablecoin laws coming this month.
Sonnet shareholders approve merger for potential $1B HYPE crypto treasury.

NOTEWORTHY READS & MEME

Pillage Capital’s read on Crypto Exodus.
Steakhouse’s read on Article DeFi Markets Update.
Alex Kruger’s read on 2026: The Year of the Fed's Regime Change.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.