1. MARKET OBSERVATIONS

NCI Performance (Weekly): The Nasdaq Crypto Index^TM (NCI^TM) fell 1.3% on the week, reflecting muted price action amid low volumes and mixed ETF flows. Regulatory progress provided modest support, but selective BTC demand and ongoing ETH outflows kept overall conviction restrained.

 

Markets Drift Without Conviction

Crypto traded sideways throughout the week, with muted price swings and thin volumes reflecting low investor engagement.

 

ETF Flows Split Along BTC–ETH Lines

ETH ETFs saw outflows while BTC ETFs attracted inflows, including a whopping nearly $500M on Dec. 17,¹ pointing to selective rather than broad-based demand.

 

Regulatory Headlines Offer a Bid

Sentiment improved modestly and price action surged following progress on U.S. crypto oversight, with encouraging leadership changes at the CFTC² and a January markup for the Clarity Act.³

 

^{Sentiment improved modestly and price action surged following progress on U.S. crypto oversight, with encouraging leadership changes at the CFTC2 and a January markup for the Clarity Act.3}

 

2. PERFORMANCE ATTRIBUTION

 

The Nasdaq Crypto Index^TM | Weekly Performance Attribution

^{Past performance does not guarantee future results. You cannot invest directly in an index. Index performance does not reflect actual fund performance, as funds may vary significantly from index securities. Index returns exclude management fees, transaction costs, expenses, or brokerage commissions, which could reduce fund returns. Crypto performances are determined by the reference index for each asset, as provided by CF Benchmarks. Source: Hashdex Asset Management with data from CF Benchmarks (from December 14, 2025 to December 21, 2025).}

 

3. INDUSTRY DEVELOPMENTS

Industry Developments | December 16, 2025 to December 22, 2025

 

Michael Selig Advances to Lead the CFTC

 

• The U.S. Senate voted to advance Michael Selig as CFTC chair, positioning the agency to take on a central role in federal crypto regulation as market-structure legislation progresses.

• With prior SEC crypto experience and industry backing, Selig’s appointment strengthens the case for clearer oversight and reinforces the CFTC’s growing influence over spot crypto markets.

Clarity Act Scheduled for a Senate Markup

• David Sacks confirmed that a Senate markup for the Digital Asset Market Clarity Act is scheduled for January, following strong bipartisan passage in the House.

• The bill would clarify jurisdiction between the SEC and CFTC, reducing regulatory ambiguity and laying groundwork for broader institutional participation in U.S. crypto markets.
  
  

Lawmakers Target Staking Taxation Reform

• U.S. lawmakers are moving to fix the double taxation of crypto staking rewards, which are currently taxed upon receipt and again when sold.

• Treating staking rewards like mined commodities would reduce compliance burdens and align crypto taxation with existing frameworks, removing a key friction point for participation ahead of the 2026 tax season.
  
  

^{Third-party data is for informational use only. Source: The Block, X, TradingView accessed on December 22, 2025.} 

 

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