As VaultSeason Arrives, Institutions Are Quietly Rebuilding The Rails
Vaultseason is here, that un-festive time of cycle when crypto investors store their assets away in hopes of locking up supply, earning high yields, farming points for future airdrops, or simply lie in wait for the next bull run to begin.
This time round, institutions are signalling the transition. Banks that used to roll their eyes at crypto have changed their tune – if cautiously.
Bank of America is now advising certain wealth clients that up to 4% exposure to crypto could make sense. Not Bitcoin specifically, or Ether, or tokenized treasuries. Just “crypto.” Banks don’t pivot away from traditional guidance unless they’re preparing for big changes.
Twenty years ago, a starter home in America averaged around $225,000. Today, Bitcoin pricing models see it orbiting a similar price band. Whether the parallel is luck or coordination is beside the point. A narrative is forming where the behavior of one digital asset can mirror a major economic milestone.
Texas plants the flag
Earlier this year, Texas put $10 million of state capital into Bitcoin exposure: half into BlackRock’s spot ETF, half into IBIT. It wasn’t large, but state governments rarely take directional positions in volatile assets. When they do, it suggests a new policy formation.
Once a state treasury gets involved in an asset, political incentives change. No governor or federal agency wants headlines about taxpayer losses on digital coins. Whether anyone admits it or not, state exposure creates a soft backstop. Sovereign losses make for very bad optics, so politicians are incentivized to avoid them by design
Wisconsin’s State Investment Board, which bought Bitcoin ETFs early and sold …
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