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🏦🤝 Vanguard: They Capitulated.

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Hello there you embodiment of curiosity;

Welcome to today's edition of Osiris News. The gates didn't just open; they were removed entirely. Vanguard and Bank of America capitulated within the same 24-hour window, effectively whitelisting crypto for the largest pools of passive capital in the US. The market responded by snapping Bitcoin back above $92k, erasing the early-week fear faster than short positions could close. It feels less like a rally and more like a repricing of access.

🔍 Quick Overview

• Institutional Access: Vanguard and BofA reverse course, whitelisting crypto for trillions in passive capital.

• XRP ETFs: Inflows hit $756M, but early whales are using the new liquidity as an exit.

• Ethereum: The Fusaka hard fork just doubled L1 capacity, directly lowering L2 fees.

• DeFi Strategy: Aave signals a shift, cutting unprofitable chains to focus on unit economics.

• Speculative Rotation: Memecoin volume collapses as capital rotates into prediction markets for probability-based bets.

Trending News

🏦🔓 Vanguard Reverses Ban on Crypto ETFs

The $11T asset manager now allows 50M clients to trade Bitcoin, Ethereum, and Solana funds, capitulating to retail demand. Simultaneously, Bank of America authorized its 15,000 advisors to recommend 1-4% crypto allocations.

⚡️⛽️ Ethereum Fusaka Upgrade Goes Live

The network doubled its block gas limit to 60M units today, significantly increasing transaction throughput. The update also enables native biometric authentication, allowing hardware-level security like FaceID to interact directly with wallets.

📜⚖️ UK Law Officially Defines Crypto as Property

King Charles III gave Royal Assent to legislation creating a third category of personal property for digital assets. This legal framework provides clarity for insolvency cases, asset recovery, and digital inheritance disputes.

🐙🤝 Kraken Acquires Tokenizer Backed Finance

The exchange purchased the Swiss firm to offer tokenized stocks and ETFs alongside crypto assets. This acquisition targets the projected $18T RWA market, enabling 24/7 trading of traditional equities on-chain.

This tiny pause brought to you by “please let this help pay the bills” 👀

Beyond the Noise

Vanguard’s reversal is the headline event. After blocking spot BTC ETFs in January and claiming crypto had no place in long-term portfolios, the $11 trillion asset manager is now permitting trades on BTC, ETH, SOL, and XRP funds. Bank of America followed suit, authorizing 15,000 advisors to proactively recommend a 1-4% allocation starting January 5th. This isn't innovation; it's client retention. These firms were losing AUM to competitors that didn't moralize asset classes, and the timing suggests they are more afraid of missing the cycle than they are of regulatory blowback.

The market structure is shifting as this new capital enters. XRP provides the clearest case study. While XRP ETFs attracted $756 million in inflows over the last 11 days, the price action has been sluggish. The data shows a massive hand-off: the number of wallets holding over 100 million XRP dropped by 20%. Early "old money" whales are using the ETF liquidity as an exit ramp, dumping positions onto the new institutional custodians. It is a centralization event disguised as adoption.

While the suits argue over allocations, Ethereum quietly executed the Fusaka hard fork today. The upgrade doubled the block gas limit to 60 million and implemented PeerDAS for blob sampling. This is an immediate 100% capacity hike for the base layer, designed to lower fees for the L2s consuming blockspace. Simultaneously, Aave is signaling the end of the "expansion at all costs" era. The Aave Chan Initiative proposed cutting deployments on zkSync, Metis, and Soneium. The math is undeniable: Aave’s Ethereum market earns $142 million annually, while the Metis deployment generates $3,000. Protocols are finally prioritizing unit economics over map coverage.

Speculative capital is also rotating. Solana memecoin volume collapsed to $13.9 billion in November, down from a peak of $169 billion, while prediction markets like Polymarket and Kalshi hit nearly $8 billion. Traders are moving from random tickers to binary outcome bets, or "**info finance**." Even CNN is integrating Kalshi odds into their reporting. The market is signaling a preference for an edge based on probability rather than pure hype.

This Caught My Eye:

Here’s a breakdown:

• The liquidation map shows a massive $5.89B wall of short positions stacked above the current ETH price, with the biggest cluster triggering around $3,500.

• If ETH reaches that level, shorts would be forcibly closed, creating a violent short squeeze setup that could accelerate price momentum even further.

Looking Ahead

Watch the ETF inflows closely over the next 48 hours as Vanguard clients execute their first trades. We also have U.S. jobless claims tomorrow, which will serve as the final liquidity check before the CPI print and Fed interest rate decision on December 10th. If the labor market softens, the odds of a rate cut increase, adding macro tailwinds to this structural shift. Until then, expect choppy price action as the market digests the new supply of buyers against the old supply of sellers.

Until tomorrow,
- Dr.P