Crypto Currents: Vanguard opens spot digital asset ETF trading

Vanguard is opening its platform to spot crypto ETFs, Bank of America is recommending digital asset allocations, and Goldman Sachs is bolstering its lineup with a massive acquisition. Meanwhile, the mining sector faces profitability headwinds despite a push toward renewable energy. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio, Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

VANGUARD AND MAJOR BANKS OPEN FLOODGATES TO CRYPTO ETF ACCESS: The divide between traditional finance and digital assets is quickly evaporating. Vanguard, previously the most prominent holdout against the sector, has reversed course and will now allow clients to trade spot crypto ETFs on its brokerage platform. CryptoSlate reports that this move unlocks the $3T digital asset market for the firm’s conservative client base, granting them access to products from issuers like BlackRock (BLK).

This capitulation is part of a broader trend among banking giants today. Bank of America (BAC) is now actively recommending a 1%-4% crypto allocation for its wealth management clients. Yahoo Finance notes the bank will enable access to four spot bitcoin (BTC-USD) ETFs starting in January, signaling a newfound confidence in the asset class. Not to be outdone, Goldman Sachs (GS) is cementing its position by agreeing to acquire Innovator Capital Management for nearly $2B. This acquisition brings bitcoin-linked structured ETFs directly under Goldman’s asset management umbrella.

These strategic pivots validate the success seen by early movers. BlackRock’s U.S. bitcoin ETF has already grown to $70B in assets, becoming the firm’s most profitable product line. The menu of regulated options continues to expand as well, with the first U.S. ETF tied to Chainlink (LINK-USD) winning approval for listing on the NYSE Arca.

PUBLIC COMPANIES ADJUST STRATEGIES AMID MERGERS AND LAWSUITS: Beyond the banking sector, publicly traded companies are aggressively maneuvering to capture value in the evolving landscape. Trump Media & Technology Group (DJT) and Crypto.com are planning a merger with Yorkville Acquisition Corp (YORK) toHowever, the path to integration is not without hurdles. Coinbase (COIN) is facing renewed shareholder scrutiny. Decrypt reports that a derivative lawsuit has been filed accusing executives of selling $4.2B in stock while allegedly concealing internal risks. Meanwhile, Kraken is bridging the gap between crypto and traditional equities; Bloomberg reports that the exchange has acquired Backed Finance to bolster its tokenized asset offerings ahead of a planned 2026 IPO.

MINING PROFITABILITY DIPS AS SECTOR PURSUES GREEN ENERGY SOLUTIONS: The mining sector faces a challenging environment as profitability headwinds persist. CoinDesk reports that, according to JPMorgan Chase (JPM), bitcoin mining profitability fell for the fourth consecutive month in November, with daily block reward gross profit dropping 26%. The report highlighted that Cipher Mining (CIFR) outperformed its peers, while Bitdeer Technologies (BTDR) lagged. Despite the margin compression, innovation continues; Canaan (CAN) has partnered with SynVista Energy to develop an AI-powered renewable mining platform aimed at optimizing energy consumption.

H.C. WAINWRIGHT ANALYST UPDATES:

H.C. Wainwright reiterated its ratings and price targets on the following crypto-related stocks:

• Strategy (MSTR): The firm reiterated a Buy rating but lowered its price target to $475 from $595. The analyst cited the recent drawdown in bitcoin prices, which led the company to cut its 2025 financial and KPI guidance, including lowering its “BTC Yield” target. However, the firm views the updated guidance as achievable and praised the establishment of a $1.44B reserve to support future obligations, noting it reduces near-term dilution risk.
• CleanSpark (CLSK): The firm reiterated a Buy rating and $27 price target. H.C. Wainwright remains bullish on the company’s decision to repurpose its 250 MW site in Sandersville, GA for HPC/AI workloads. The analyst believes this pivot could accelerate a colocation deal with a hyperscaler given the site’s readiness.
• Applied Digital (APLD): Buy rating and $40 price target reiterated.
• Bitfarms (BITF): Buy rating and $4 price target reiterated.
• Bit Digital (BTBT): Buy rating and $7 price target reiterated.
• Bitdeer Technologies (BTDR): Buy rating and $30 price target reiterated.
• Cango (CANG): Buy rating and $8 price target reiterated.
• Cipher Mining (CIFR): Buy rating and $30 price target reiterated.
• Core Scientific (CORZ): Buy rating and $25 price target reiterated.
• CoreWeave (CRWV): Buy rating and $180 price target reiterated.
• BitFuFu (FUFU): Buy rating and $7 price target reiterated.
• HIVE Digital (HIVE): Buy rating and $10 price target reiterated.
• Hut 8 (HUT): Buy rating and $27 price target reiterated.
• Iris Energy (IREN): Sell rating and $56 price target reiterated.
• MARA Holdings (MARA): Buy rating and $28 price target reiterated.
• Mawson Infrastructure (MIGI): Neutral rating reiterated.
• Riot Platforms (RIOT): Buy rating and $26 price target reiterated.
• Soluna Holdings (SLNH): Neutral rating reiterated.
• WhiteFiber (WYFI): Buy rating and $34 price target reiterated.

PRICE ACTION: As of time of writing, bitcoin was trading at $90,701.66, while ether was trading at $3,009.19, according to price data from CoinDesk.