NFT sales grew 12% in a week, reaching $67.7 million. - This week, activity in the NFT market rebounded.
Many Fed officials see a possibility of rate hikes if inflation persists. - Many U.S. monetary policymakers have stated that interest rate hikes would likely be necessary if inflation does not decline.
Cryptocurrency hedge funds are set to post their worst annual performance since 2022.
This year, professional managers monitoring market dynamics and fundamentals are seeing returns decline to negative levels.
According to Bloomberg analysts, 2025 was supposed to be a breakthrough year thanks to support from the US government and the entry of institutional investors into the market. Instead, it has become a liquidity trap. In October, Bitcoin reached a record high of $126,000, but the price movement occurred in an environment of low liquidity. This made it virtually impossible for institutional investors to open or close positions without significant slippage.
As a result, historically profitable basis trading has evaporated. As Wall Street firms delved deeper into the ETF space, spreads have narrowed, and the double-digit monthly returns once boasted by the first cryptocurrency funds are a thing of the past.
The decline in underlying returns is the main reason why returns for directional funds declined by 2.5% and for fundamental-focused funds by 23% by November 2025. On the other hand, returns for market-neutral crypto hedge funds by November 2025 were approximately 14.4%.
According to a report by Crypto Insights Group, in 2026, crypto hedge funds will be less about risk initiation and more about deciding which strategies facilitate broader exposure.
By the end of 2025, investing in digital assets became more accessible to institutions, but also more demanding. Regulation has expanded access, and investor behavior has set higher standards. Active management in 2026 will depend on who is willing to meet these standards, the report states.