Daily Crypto Briefing – December 20, 2025

Markets face growing uncertainty as analysts debate whether Bitcoin has entered a bear market, while regulatory champions prepare to exit Washington and new ETF products continue launching despite volatile conditions.

Top Stories

VanEck Files Avalanche ETF with Staking Rewards

VanEck's filing introduces a new model for crypto ETFs by including staking rewards for AVAX investors. The fund will use Coinbase Crypto Services as its staking provider with a 4% service fee, with rewards flowing directly to the fund's net asset value.

Ethereum Plans 'Glamsterdam' Upgrade for MEV Fixes

Ethereum developers are targeting 2026 for the "Glamsterdam" upgrade aimed at addressing MEV (maximal extractable value) fairness issues. While the full scope remains undefined, the upgrade represents continued efforts to improve transaction ordering and reduce extractive practices.

$50 Million Lost in Address Poisoning Scam

A crypto user lost nearly $50 million in USDT after copying a fraudulent wallet address from their transaction history. The victim has offered a $1 million bounty for the funds' return, highlighting the persistent threat of sophisticated scamming techniques.

Brooklyn Man Charged in $16 Million Coinbase Phishing Scheme

Federal authorities indicted a 23-year-old Brooklyn resident for allegedly stealing $16 million from approximately 100 Coinbase users through phishing attacks. The defendant reportedly used the Telegram handle "@lolimfeelingevil" and told friends he lost $6 million gambling on crypto.

Regulation

Senator Lummis Announces Retirement

• Crypto's strongest Senate ally will not seek reelection in 2026
• The 71-year-old Wyoming Republican cited fatigue after years of advocacy
• Her departure could significantly impact future crypto legislation momentum
• Leaves a crucial Republican seat in play for the 2026 elections

Market Structure Bill Uncertainty

• Analysis suggests comprehensive crypto legislation faces uncertain prospects
• Industry observers debate whether meaningful bills will pass before political dynamics shift
• Crypto executives warn the industry must make progress during current favorable political climate

Coinbase Legal Battles

• Coinbase sued three states over prediction market restrictions
• Company argues federal law supersedes state gambling regulations
• Legal action coincides with new Kalshi partnership announcement

Markets

Bear Market Debate Intensifies

• CryptoQuant analysts declare Bitcoin has entered a bear market with downside risk to $70,000
• Fidelity's director predicts Bitcoin bear market in 2026, bottoming near $65,000
• Citigroup maintains $143,000 base price target despite current volatility
• Bitcoin trades around $88,000 as technical indicators show mixed signals

ETF Performance Divergence

• BlackRock's IBIT ranked sixth in 2025 ETF inflows despite negative returns
• XRP ETFs continue strong performance with $1.2 billion in total assets
• Bitcoin ETF outflows mask underlying institutional conviction, analysts suggest

Global Market Pressures

• Japan's rate hike to 0.75% ends "free money" era, pressuring risk assets
• Stablecoin sector stalls near $310 billion as major players shuffle positions
• Brazil's Gen Z drives crypto adoption with focus on stablecoins and income tokens

Technology

Ethereum Development Updates

• Ethereum Foundation refocuses on security over speed with strict 128-bit rule for 2026
• zkEVM ecosystem achieves major latency improvements, dropping proving times from 16 minutes to 16 seconds
• New wallet creation surges as analysts anticipate major ETH price movements

Quantum Computing Concerns

• Bitcoin's quantum debate resurfaces as institutional capital considers long-term risks
• Blockstream CEO Adam Back pushes back against imminent threat claims
• Experts maintain current quantum technology poses no immediate risk to Bitcoin

Quick Hits

• Hilbert Group acquired Enigma Nordic for $32 million to enhance trading capabilities
• Circle expands USDC adoption into real-world payments and treasury solutions
• Binance offers $5 million bounty for tips on fake listing agent fraud
• SEC seeks decade-long bans for former FTX executives Caroline Ellison, Gary Wang, and Nishad Singh
• Poland's parliament passes crypto bill for second time after presidential