Institutional flows boost crypto markets amid regulatory and security developments
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Crypto ETFs Drive Flows as SEC Sees Leadership Shift and Security Exploit Hits EVM Wallets
January 4, 2026
Crypto Signals Daily market brief
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Today’s Setup
Institutional flows boost crypto markets amid regulatory and security developments
ETF flows: Spot Bitcoin and Ethereum ETFs drew over $646M on the first trading day of 2026, while XRP ETFs surpassed $1B AUM without price impact.
Regulatory shakeup: SEC Democratic Commissioner Caroline Crenshaw departed, leaving an all-Republican panel amid bipartisan crypto market legislation progress.
Security exploit: Hundreds of EVM wallets were drained via coordinated small-value attacks, underscoring ongoing crypto security challenges.
Watch: Upcoming US Senate Banking Committee markup on the CLARITY Act scheduled for January 15.
Top Stories
Bitcoin and Ethereum ETFs Draw Over $646M Inflows on First Trading Day of 2026
US-based spot Bitcoin and Ethereum ETFs recorded their largest net inflow day in 35 trading days on January 2, 2026, with combined inflows exceeding $646 million, led by BlackRock's iShares Bitcoin Trust and other major funds.
XRP spot ETFs surpass $1 billion AUM but price remains stagnant
XRP spot ETFs crossed $1.14 billion in assets under management with net inflows near $423 million since November 14, though the token price remains around $1.88, indicating ETF AUM growth hasn't yet driven price gains.
Source: CryptoSlate
SEC’s sole Democratic Commissioner Caroline Crenshaw departs, leaving all-Republican panel
Commissioner Caroline Crenshaw, known for dissenting on spot Bitcoin ETF approvals, left the SEC, resulting in a commission composed entirely of Republicans amid ongoing crypto regulatory debates.
Source: The Block
Hundreds of EVM Wallets Drained in Coordinated Low-Value Crypto Exploit
An attacker drained hundreds of Ethereum Virtual Machine-compatible wallets for small amounts, under $2,000 per address, likely using phishing emails and malicious browser extensions, highlighting persistent security risks.
BitMine Stakes Additional $259M in Ethereum, Validator Queue Nears 1 Million ETH
BitMine expanded its Ethereum staking by $259 million, bringing total staked ETH to roughly 544,000, while Ethereum’s validator queue approaches 1 million ETH with an activation wait time nearing 17 days.
Also on the Wire
• BlackRock ended 2025 holding around 771,000 Bitcoin with CEO Larry Fink forecasting BTC could reach $700,000.  ·  Bitcoin News
• Bitcoin hit $90,000, a three-week high, though derivatives and ETF flows reveal cautious trader sentiment.  ·  Cointelegraph
• Bitcoin volatility in 2025 hit a historic low of 2.24% daily realized volatility, attributed to deep institutional market infrastructure.  ·  CryptoSlate
• Apparent large Bitcoin whale accumulation was mostly internal exchange housekeeping, not actual buying.  ·  BeInCrypto
• US lawmaker Rep. Ritchie Torres proposed a bill targeting insider trading on political prediction markets after a notable $400,000 Polymarket bet.  ·  Cointelegraph
• Jupiter CTO signals potential end to $70M JUP token buybacks amid questions over limited impact.  ·  AMBCrypto
• Ethereum’s 2026 outlook centers on balancing decentralization efforts with revenue pressures, which may outweigh price moves.  ·  AMBCrypto
• Coinbase Ventures outlines crypto’s biggest growth bets for 2026 in real-world assets, DeFi, and AI-blockchain infrastructure.  ·  Bitcoin News
• Coinbase says the CLARITY Act is more complex than stablecoin legislation, with bipartisan momentum expected but longer timeline for passage.  ·  CryptoNews