Trakx Weekly Update: Crypto Week Delivers

Key Crypto Market Figures

CTIs Weekly Performance

Even though the week ended with a bit of a “buy-the-rumour, sell-the-fact” dynamic, digital asset prices continued to rally, as evidenced by our flagship Top10 Crypto CTI gaining 11%. The best performance came from the higher-beta Meme CTI, which rallied over 21%, while the Bitcoin Momentum CTI took last place in the performance tables, slipping 1.2% over the prior seven days.

A Stroke Of Genius

Billed as “Crypto Week” by the US House of Representatives, three landmark pieces of legislation were discussed last week that aimed to lay the foundation for how the world’s largest economy will integrate digital assets—and it did not disappoint. After a failed vote on Tuesday, the House narrowly voted 217–212 in favour of a resolution to reconsider the bills, following a record-breaking 10 hours of debate. Although procedural, the vote signalled there were enough Republican votes to pass the legislation. Progress was also helped by the decision to attach the Anti-CBDC Surveillance State Act to the National Defense Authorization Act, which overcame objections from eight Republicans.

As events unfolded, the GENIUS Act—which had already passed the Senate—was brought to a floor vote on Thursday and passed by a solid 308–122 majority. With the stroke of a pen on Friday, Trump became the first US President to sign into law a major piece of digital asset legislation. That same day, and with almost as much support, the CLARITY Act passed with a 294–134 majority. As the name suggests, last week’s legislative actions will bring much-needed legal clarity for digital assets in the US—a “must have” for heavily regulated TradFi players whose involvement is essential for widespread adoption of the asset class.

Powell In The Cross Hairs

The successful passage of key digital asset legislation wasn’t the only source of excitement in the crypto space last week. Rumours swirled in the media that Trump was on the verge of firing Fed Chair Jerome Powell, someone the President has not hesitated to criticize for maintaining interest rates at what he views as punitively high levels, despite subdued inflation. Treasury Secretary Scott Bessent confirmed the administration had already begun the formal process of selecting a new Chair ahead of Powell’s term ending in May 2026. He added there were “a lot of good candidates inside and outside the Federal Reserve.” While Bessent’s comments didn’t explicitly suggest Powell would depart early, the probability of his early exit jumped to almost 35% on Polymarket—the prediction platform that correctly called the 2024 Presidential election, unlike many professional pollsters.

Ethereum ETF Flows

Relative to spot Bitcoin ETFs, spot Ethereum ETFs have historically played second fiddle. In their first seven months, they attracted just a little over $3 billion in AUM (5X lower than Bitcoin ETFs at the same stage). More recently, however, sentiment has turned more positive. Since the start of July, ETH ETFs have seen net inflows of over $2 billion—a record month since their launch in July 2024—led by BlackRock’s ETHA fund. Boosting sentiment (and the ETH price) has been a more focused Ethereum Foundation, following a recent organizational shake-up and the creation of several Ethereum treasury companies. These changes have helped Ethereum maintain its leadership, particularly in non-empty wallet counts, which now stand at 152 million, surpassing every other cryptocurrency.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Trump Signs GENIUS Act Into Law, Ushering In Crypto’s Integration With US Economy: Decrypt
• Epstein, Antichrists & Dragons: Crypto Week in Congress Nearly Goes Off the Rails: Decrypt
• Polymarket Odds on Jerome Powell’s Ouster Jumps as Congresswoman Says It’s ‘Imminent’: Coindesk
• Ethereum ETF holdings hit all-time high near 5 million ETH as record inflows drive price over $3,400: The Block
• No, the US government hasn’t sold 179,000 bitcoin: Protos
• UK Home Office Plans to Sell $7 Billion in Seized Bitcoin: The Telegraph: CryptoRank

Trakx News

• On our website we published an article on Didi Taihuttu: The Man Who Bet Everything on Bitcoin and Won and an interview with an anonymous early Bitcoin pioneer as to their motivations for holding the world’s seminal cryptocurrency.

Trakx CTIs Performance

Sources: Coingecko and AlphaVantage

*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.

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Disclaimers: No Investment Advice. Index returns and statistics are for illustration only. Index returns do not reflect any transaction costs or expenses. Past performance does not guarantee future results. The information provided in this newsletter does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the newsletter content as such. Trakx.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Readers shall conduct their own due diligence and consult their financial advisors before making any investment decisions.