The Knee is Bending

Bitcoin adoption continues to grow, no matter where you look. I have spent the last month discussing the price of bitcoin and want to pull back and discuss macro elements and updates surrounding bitcoin to show that, although a price of around $90,000 may feel like the world is ending (to some), the reality is the adoption curve is only ramping up.

The knee is bending.

TradFi and the legacy financial world continue to bow to the emergence of bitcoin.

Less than 1.5 years ago, the CEO of Vanguard, the “Father of Index funds,” went on record to say, “We don’t plan to offer crypto ETFs, and we aren’t going to change our minds.” Just this week, their new CEO said that Vanguard will switch policies and allow ETFs and mutual funds that primarily hold cryptocurrencies to trade on their platform. Vanguard services 50 million brokerage accounts and oversees $11 trillion in assets, and has now opened its doors to crypto.

Bank of America has updated its recommendations for its wealth management clients and now recommends clients allocate 1% to 4% of their portfolios to crypto and highlight bitcoin ETFs as the focal point. The guidance oversees Merrill, the Private Bank, and Merrill Edge, which gives over 15,000 advisers the ability to discuss digital assets. As a reminder, before this clearance, advisers were not allowed to discuss the assets. Additionally, starting January 5th, 2026, the bank’s CIO will begin formal coverage of four bitcoin ETFs: Bitwise’s BITB, Fidelity’s FBTC, Grayscale’s Bitcoin Mini Trust, and BlackRock’s IBIT. This Bank of America change comes on the heels of Morgan Stanley recommending a 2% to 4% allocation to clients in October.

BlackRock has announced that its bitcoin ETF $IBIT ( ▼ 3.47% ) is its most profitable ETF by a large amount.

BlackRock CEO Larry Fink has also largely emerged as a leading spokesman for Bitcoin. He recently discussed that sovereign wealth funds are accumulating bitcoin and do not view their positions as trades; they view them as long-term strategies.

The Harvard endowment has also more than doubled their position in their $IBIT as disclosed by their recent 13F filing for Q3. It is now their largest position in the endowment at just under half a billion dollars. Harvard is also the 16th largest holder of IBIT overall.

I don’t normally just discuss news headlines, but given my recent discussions on price, I think all of the above updates have similarities that allow you to draw the same conclusion:

Each headline above caters to long-term horizons and not to short-term trades.

Getting legacy banking institutions to change policies and sovereign wealth funds and endowments to buy in continues to showcase the paradigm shift that bitcoin continues to force the world to adopt. In the world of bitcoin, you either own bitcoin or you get left behind. There is no better form of sound money or better form of a store of value. As our currencies and other assets are programmed to inflate, bitcoin is programmed to become more scarce. These adoption cycles do not happen overnight. We are roughly 15 years into the bitcoin experiment, and legacy institutions are continuing to bend the knee. We are in for a wild ride as this wave continues.

Zoom out your time horizon.

Play the long game.

Understand and learn more about the history of man, economics, and the fundamentals of bitcoin.

And:

Stack SATs.

The views and opinions expressed here are for entertainment purposes only and should, in no way, be interpreted as financial or investment advice. Always conduct your own research when making an investment or trading decision, as each such move involves risk. Nothing contained in this e-mail/article constitutes, or shall be construed as, an offering of financial instruments, investment advice, or recommendations of an investment strategy.