Ethereum News Today: Ether ETFs Face $465M Outflow as Price Drops 12%

Spot Ether exchange-traded funds (ETFs) experienced a record net outflow of $465 million on Monday, the largest single-day withdrawal since their launch, according to Farside Investors [1]. This marked the second consecutive day of outflows following a 20-day streak of inflows, which culminated in $152 million in outflows on Friday. The pullback coincided with Ethereum's price dropping 12% over the weekend from $3,858 to $3,380, although it rebounded slightly to $3,629 by Tuesday. BlackRock’s iShares Ethereum Trust (ETHA) was the most affected, losing nearly $375 million in outflows. Despite this, the fund maintains a cumulative net inflow of $9.3 billion and total net assets of $10.7 billion [1].

US President Donald Trump is reportedly close to signing an executive order that would instruct banking regulators to investigate claims of "debanking" within the crypto sector, as reported by The Wall Street Journal [1]. The directive would examine whether financial institutions violated antitrust, consumer financial protection, or fair lending laws by restricting access to banking services for crypto firms. The move is in response to ongoing allegations that the Biden administration has indirectly pushed banks to cut ties with crypto businesses, following the 2022 collapse of FTX. The Federal Deposit Insurance Corporation (FDIC) sent redacted letters in 2022 asking some banks to pause crypto activities, a step criticized by Coinbase’s legal team at the time as evidence of systemic bias against the industry [1].

Coinbase adviser George Osborne warned in a Financial Times op-ed that the United Kingdom is lagging in the digital asset space, particularly in the development of stablecoins [1]. Osborne, a former UK chancellor, argued that stablecoins could help the UK maintain its influence in global financial services by reducing transactional friction and supporting cross-border payments. He expressed concern that regulatory delays are undermining the country’s potential as a leader in digital finance. His comments followed the release of a controversial musical ad by Coinbase, which directly criticized the UK’s economic and cost-of-living challenges.

The recent outflows from Ether ETFs indicate a shift in investor behavior after a strong inflow period in July, when the funds recorded a record $5.43 billion in net inflows. Analysts suggest the large outflows could reflect profit-taking or a reassessment of risk amid broader market volatility. While short-term movements are notable, the long-term position of BlackRock’s ETFs suggests continued investor interest in Ethereum [1].

Trump’s potential executive action could reshape the regulatory landscape for crypto businesses, particularly if it results in revised policies that reduce barriers to traditional banking services. However, the actual impact will depend on the findings of the investigation and the extent of regulatory enforcement actions that follow.

Osborne’s critique of the UK’s slow progress on stablecoin regulation highlights the growing strategic importance of these tokens in financial infrastructure. His remarks are likely to intensify pressure on UK regulators to accelerate the development of a clear and supportive legal framework for stablecoins [1].

Source: [1] Here's what happened in crypto today https://cointelegraph.com/news/what-happened-in-crypto-today