Dear Investor,

Regulatory clarity, something the digital asset industry has sought for several years, continued to take shape in June with a number of developments, most notably the passage of stablecoin legislation in the US Senate.  

The Nasdaq Crypto Index^TM (NCI^TM) rose 2.1% for the month, a relatively modest gain as broader market uncertainties offset the positive crypto-related developments. But as the crypto asset class gains legitimacy and loses its speculative premium of the past, we believe this maturation helps set the stage for more sustainable growth over time.

Early in the month, Samir Kerbage wrote in his latest Notes from the CIO about some of the most impactful recent developments—including the embrace of stablecoins in the US—that will help drive interest from traditional financial institutions and demand for digital assets.  

As always, we are greatly appreciative of your trust in us and are here to answer any questions you may have.  

-Your Partners at Hashdex 

 

Market Review

June marked a pivotal turning point for digital assets as regulatory clarity began to crystallize in the US. The month's defining legislative moment came on June 17 when the Senate passed the GENIUS Act, creating a federal regulatory framework for stablecoins—the first major crypto legislation in the US. This watershed achievement, coupled with Circle's blockbuster NYSE debut on June 5 and the SEC's openness to DeFi innovation, set the stage for crypto's next evolution, even as the NCI^TM posted a modest 2.1% gain amid broader market uncertainties.

The Federal Reserve's decision to maintain interest rates at its June 17-18 meeting, citing ongoing tariff-related uncertainties, created a mixed backdrop for risk assets. While traditional indices outpaced crypto—the S&P 500 gained 5.0% and the Nasdaq-100 rose 6.3%—the institutional infrastructure milestones achieved during the month may prove more significant than near-term price movements. The Fear & Greed Index climbed to 70, reflecting growing optimism as investors began to grasp the transformative potential of the GENIUS Act's regulatory framework.

Circle's IPO success story dominated headlines, raising $1.1 billion at $31 per share with the stock soaring 168% on its first trading day. This was no isolated event: Robinhood completed its $200 million acquisition of Bitstamp on June 2, securing over 50 regulatory licenses globally, while Stripe deepened its crypto integration by acquiring wallet provider Privy on June 11. These moves weren't merely corporate maneuvering—they represented traditional finance's wholesale embrace of blockchain infrastructure.

Bitcoin demonstrated relative strength with a 2.7% gain, bringing its year-to-date performance to 15.1%—the clear outperformer in a challenging market. Ethereum slipped 1.1% despite institutional anticipation of stablecoin legislation benefits, while Solana remained flat at 0.0%. The divergence between Bitcoin's resilience and altcoin weakness underscored a "flight to quality" dynamic within crypto, with capital consolidating in the most liquid and institutionalized digital asset.

Thematic indices painted a more nuanced picture. Despite the SEC's constructive DeFi roundtable mid-month, the Decentralized Finance (DeFi) index managed only a 2.8% gain—insufficient to offset its painful -31.9% year-to-date decline. The Smart Contract Platform (Web3) index fell 7.6%, while the Digital Culture (META) index dropped 7.3%. The Vinter Hashdex Risk Parity Momentum (HAMO) index showed modest resilience with a 1.0% gain, benefiting from its systematic approach during volatile times.

 

 

The GENIUS Act: Stablecoins Become America's Digital Dollar

June 2025 will be remembered as the month when US crypto regulation shifted from promise to reality. The GENIUS Act's Senate passage represents far more than legislative progress—it's a strategic positioning of America as the global leader in digital finance. By establishing clear rules for stablecoin issuance and operation, the Senate has effectively blessed a $250 billion market that Treasury Secretary Scott Bessent predicts could reach $3.7 trillion within five years.

The timing couldn't be more significant. As the Federal Reserve held rates steady amid tariff uncertainties, stablecoins emerged as a potential tool for both monetary policy transmission and dollar dominance. The legislation's framework ensures that US dollar-pegged stablecoins—which represent over 90% of the market—will operate under stringent oversight while maintaining the innovation that makes them attractive for international trade and DeFi applications.

 

Market Dynamics: Building Tomorrow While Prices Consolidate

June's paradox was striking: unprecedented institutional adoption met with tepid price performance. The NCI's 2.1% gain, while positive, lagged traditional markets significantly. Yet this disconnect between infrastructure development and token prices may represent opportunity rather than disappointment.

Consider the data: Bitcoin exchange outflows averaged 72,000 BTC daily in June, signaling massive institutional accumulation. Circle's IPO validated the stablecoin business model spectacularly. Major payment processors and brokers rushed to acquire crypto capabilities. The SEC hosted unprecedented dialogues with DeFi builders. By any fundamental measure, June was transformative.

So why the muted price response? The answer lies in crypto's maturation. As the asset class gains legitimacy, it loses speculative premium. Traditional investors now benchmark crypto against conventional assets, and by that measure, June's 2.1% gain paled against the Nasdaq-100's AI-driven 6.3% surge. This normalization, while painful for momentum traders, sets the stage for more sustainable growth.

 

The performance dispersion tells its own story:

 

• Bitcoin (+2.7%): Digital gold narrative intact, institutional accumulation ongoing

• Ethereum (-1.1%): Prices still don't reflect the value of the infrastructure, despite DeFi potential

• DeFi Index (+2.8%): Modest gain masks transformative regulatory progress

• Web3 Index (-7.6%): Infrastructure tokens suffer despite adoption milestones

 

Market Cap-Weighted Indices: Your Anchor in Transitional Waters

June's divergent performance across crypto sectors reinforces the wisdom of market cap-weighted indexing. While individual tokens face existential volatility—witness the META index's crushing -51.6% year-to-date decline—the NCI's methodology ensures balanced exposure to crypto's evolution. The index's Bitcoin-heavy weighting provided stability, while maintaining measured exposure to emerging opportunities.

This systematic approach proves invaluable during regime changes. As crypto transitions from speculative asset to financial infrastructure, picking winners becomes increasingly complex. Will DeFi tokens benefit most from regulatory clarity? Will Bitcoin maintain its dominance as institutional adoption accelerates? The NCITM eliminates these impossible choices, automatically adjusting to market forces.

 

Looking Ahead: The Infrastructure Supercycle

As we enter July, three catalysts position crypto for its next growth phase:

 

1. Stablecoin Explosion: With the GENIUS Act heading to the House and Trump's expected signature this summer, prepare for exponential growth in compliant stablecoin issuance and usage.

 

2. DeFi Institutional Adoption: The SEC's openness to innovation exemptions opens doors for major asset managers to launch DeFi products, potentially reversing the sector's steep declines.

 

3. Corporate Treasury Evolution: Following Circle's IPO success, expect announcements of corporate stablecoin initiatives from Amazon, Walmart, and other giants exploring blockchain payment rails.

 

The Federal Reserve's cautious stance on rates, while limiting near-term upside, creates a stable environment for this infrastructure buildout. When the next catalyst ignites crypto enthusiasm—whether rate cuts, regulatory breakthroughs, or adoption milestones—the foundation laid in June will support sustainable appreciation.

June's lesson is clear: in transitional markets, infrastructure beats speculation. The builders are building, regulators are clarifying, and institutions are integrating. For investors with conviction in crypto's transformative potential, the NCI^TM offers optimal exposure to this unfolding revolution. The convergence of traditional finance and digital assets is no longer theoretical—it's happening now, measured in IPOs, acquisitions, and legislative victories.

The future of finance is being written in code and law simultaneously. June 2025 proved that patient capital, systematic exposure, and focus on fundamental progress will ultimately be rewarded as crypto fulfills its promise of reinventing global finance.

 

Top Stories

 

US Senate approves stablecoin legislation

The Senate voted 68-30 to pass the GENIUS Act, establishing a federal framework for U.S. dollar-pegged stablecoins, marking the crypto industry's first major legislative win. Although the bill must still pass the House, it has the potential to foster stablecoin innovation within the world’s largest economy.

First major European bank to launch stablecoin

Société Générale will launch a US dollar-pegged stablecoin named USD CoinVertible (USDCV) on the Ethereum and Solana blockchains, with public trading expected to start this month.This launch signals increasing institutional crypto adoption, boosting trust among investors and urging other major banks to pursue stablecoins, hastening mainstream digital asset integration.

Wealthy investors seek crypto exposure

A recent survey finds that 82% of wealthy investors want crypto investment advice but distrust financial advisors’ expertise, with 89% of current crypto holders planning to increase exposure in 2025. The growing demand for crypto among high-net-worth individuals highlights the need for specialized advisory services, as well as secure and sophisticated digital asset products.

 

 

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