Bitcoin ETF inflows surge while Ethereum maps seven-fork roadmap through 2029

link">Bitcoin ETFs posted their strongest performance in weeks, attracting more than $506 million in net inflows as institutional sentiment appears to be stabilizing after recent volatility [The Block](https://www.theblock.co/post/391401/bitcoin-etf-net-inflows-highest-three-weeks). This comes despite bitcoin failing to act as "digital gold" during recent tariff-induced market stress, with [CoinBureau](https://www.youtube.com/watch?v=qJNj1eVmgNc) noting that bitcoin crashed below $65,000 and wiped out over $500 million in leveraged positions when the US President unleashed historic 15% global tariffs. The institutional accumulation trend contrasts with corporate bitcoin holders facing pressure. GD Culture announced plans to liquidate 7,500 bitcoin from its treasury for share repurchases, as its market cap-to-net asset value ratio sits around 0.5, among the worst of corporate bitcoin holders [The Block](https://www.theblock.co/post/391274/gd-culture-liquidate-75000-bitcoin-hoard-share-repurchase-mnav-discount-widens). This divergence between institutional ETF flows and corporate treasury management suggests different risk appetites and time horizons among bitcoin holders.

The link">Ethereum Foundation published a comprehensive "strawmap" outlining seven major network upgrades planned through 2029, representing the most detailed technical roadmap in Ethereum's history [The Block](https://www.theblock.co/post/391406/ethereum-foundation-researchers-publish-strawmap-outlining-seven-forks-through-2029). The roadmap targets five core objectives: fast user experience via short slots and seconds-level finality, "gigagas" L1 capacity reaching 10,000 TPS through zkEVMs, "teragas" L2 scaling to 10 million TPS, post-quantum cryptographic security, and native privacy through shielded ETH transfers [Shoal Research Hub](https://t.me/shoalresearch/13177). This ambitious technical agenda comes as Ethereum faces scaling pressures and competition from faster Layer 1 networks. The roadmap's emphasis on both L1 improvements and L2 optimization suggests Ethereum is doubling down on its modular scaling approach rather than pursuing monolithic scaling solutions. The post-quantum security focus is particularly forward-looking, acknowledging long-term cryptographic threats that most blockchain projects haven't yet addressed. Meanwhile, Vitalik Buterin's recent ETH sales continue, with 17,196 ETH worth $35 million sold this month, exceeding his self-imposed "austerity" allocation by 4.9% [The Block](https://www.theblock.co/post/391391/vitalik-buterin-eth-sales-hit-35-million). The sales are reportedly funding privacy-focused projects, aligning with the roadmap's privacy objectives.

link">Aave is experiencing its most serious governance crisis as tensions escalate over a $51 million funding proposal from Aave Labs. The "Aave Will Win" framework requests $42.5 million in stablecoins and 75,000 AAVE tokens for Year One funding—representing 31.5% of the entire treasury—while proposing to ratify V4 as the protocol's future and eventually deprecate the revenue-generating V3 [Castle Labs](https://castlelabs.substack.com/p/who-built-aave). The governance dispute intensified when ACI founder published an audit of Aave Labs ahead of the funding vote, highlighting concerns about bundling technical decisions with funding requests [The Block](https://www.theblock.co/post/391308/the-daily-aave-governance-dispute-intensifies-south-korea-proposes-mandatory-crypto-influencer-disclosures-and-more). Community feedback has called for wallet disclosure, Foundation structure requirements before funding release, and V3 deprecation gated to V4 adoption milestones—none of which have been incorporated as enforceable commitments. This crisis exposes fundamental tensions in DeFi governance between founding teams, token holders, and service providers. As [Castle Labs](https://castlelabs.substack.com/p/who-built-aave) notes, the departure of BGD Labs and the current funding battle raise questions about who actually controls "decentralized" protocols when the stakes are high.

Privacy-focused blockchain infrastructure is gaining momentum across multiple fronts. Starknet announced strkBTC, a link">bitcoin-based asset enabling shielded balances and confidential DeFi transactions while preserving composability on its Layer 2 network [The Block](https://www.theblock.co/post/391420/starknet-introduces-strkbtc-to-bring-private-bitcoin-and-confidential-defi-transactions-to-its-layer-2-network). This represents a significant technical achievement in combining bitcoin's value with privacy-preserving smart contract capabilities. The broader security landscape is evolving rapidly, with physical "wrench attacks" and sophisticated phishing becoming primary concerns for crypto holders. [Bankless](https://www.youtube.com/watch?v=Fw4gxyGl6qw) featured security experts discussing the "zero crypto at home" approach, emphasizing the three-wallet model: daily spend, risky operations, and deep cold storage. The discussion highlighted that while phishing is the most common threat, physical attacks represent the highest-stakes risk requiring operational security changes. These developments reflect the maturing crypto ecosystem's focus on practical security solutions as adoption grows and attack vectors become more sophisticated.

Regulatory momentum continues building across multiple jurisdictions. The OCC issued a proposal to implement the GENIUS Act, seeking public feedback on rules that will take effect by January 18, 2027 [The Block](https://www.theblock.co/post/391371/occ-genius-act-feedback). This represents concrete progress on federal crypto banking regulations that could significantly expand institutional access. At the state level, Indiana's link">bitcoin rights bill received bicameral approval and heads for final sign-off. The legislation would open crypto investment options for public retirement plans and protect individual digital asset activities [The Block](https://www.theblock.co/post/391378/indianas-bitcoin-rights-bill). This continues the trend of state-level crypto adoption that could pressure federal regulators toward clearer frameworks. Internationally, the UK FCA selected Revolut among firms for its stablecoin regulatory sandbox, as both the FCA and Bank of England work to develop comprehensive stablecoin regulations [The Block](https://www.theblock.co/post/391237/revolut-firms-picked-uk-fca-test-stablecoin-sandbox). This coordinated approach suggests the UK is positioning for leadership in digital asset regulation.

Traditional finance integration accelerated on multiple fronts. Circle delivered a strong earnings beat with $770 million Q4 revenue and 72% USDC circulation growth, driving shares up 30% as CEO Jeremy Allaire noted USDC transactions now approach 50% market share [The Block](https://www.theblock.co/post/391275/circle-shares-25-earnings-beat-allaire-usdc-transactions-50-share). This performance demonstrates the growing institutional adoption of stablecoins as financial infrastructure. Stripe's reported interest in acquiring PayPal, following its $159 billion valuation, could reshape global payments by combining traditional fintech with crypto infrastructure [Launchy](https://launchy.beehiiv.com/p/stripe-eyes-paypal-as-valuation-hits-159b). If realized, this would create a payments giant with scale, stablecoin capabilities, custody services, and blockchain rails—potentially accelerating mainstream crypto adoption. Telegram's crypto wallet unveiled yield offerings for link">Bitcoin, Ethereum, and USDT holdings, shifting from simple self-custody into a gateway for third-party DeFi strategies [The Block](https://www.theblock.co/post/391338/telegram-crypto-wallet-yield-bitcoin-ethereum-usdt-holdings). This move by a platform with hundreds of millions of users represents significant DeFi distribution potential.