Crypto

Billionaires Are Deciding to Sell This Popular Cryptocurrency | The Motley Fool

Published

1 year ago

October 12, 2024

Billionaires Are Deciding to Sell This Popular Cryptocurrency | The Motley Fool

The new spot Ethereum ETFs are having trouble gaining traction. Should you be concerned?

The good news for Ethereum (ETH 1.77%) investors is that the world’s second-most-popular cryptocurrency is still up a modest 6% for the year. The bad news, though, is that the price of Ethereum is down nearly 25% over the past three months. Moreover, Ethereum is significantly underperforming Bitcoin (CRYPTO: BTC), which is up 50% for the year.

As a result, billionaire fund managers appear to be selling off their positions in Ethereum, signaling that a recovery may not be happening anytime soon. So if billionaires are deciding to sell this popular cryptocurrency, should you?

The spot Ethereum ETFs

The key catalyst for Ethereum was supposed to be the launch of the new spot Ethereum ETFs at the end of July. Just as the launch of the new Bitcoin ETFs in January led to a surge in the price of Bitcoin at the beginning of the year, the new Ethereum ETFs were supposed to lead to a surge in the price of Ethereum over the final months of the year.

In fact, some analysts thought that as much as $4.8 billion could flow into these ETFs by the end of the year. But these types of inflows simply have not materialized. For example, the two largest of the new spot Ethereum ETFs — the iShares Ethereum Trust (ETHA 4.19%) and the Fidelity Ethereum Fund (FETH 4.10%) — have collectively brought in just $1.5 billion in new money.

That’s well off the pace required to hit the target goal, with just over two months to go until the end of the year. While it’s too early to say that the new spot Ethereum ETFs have been a disappointment, that seems to be the growing consensus.

Investor outflows out of Ethereum

The spot Ethereum ETFs are still too new for there to be a complete list of institutions buying them, but some preliminary 13F data from the SEC is starting to trickle in. And there just doesn’t seem to be a lot of robust buying from billionaire fund managers. Of the nearly 25 institutions that have reported buying the new ETFs as of Oct. 4, only two have made purchases of $1 million or more.

Image source: Getty Images.

In fact, the big story over the past two months has been the extent of investor outflows from the new spot Ethereum ETFs. That made sense in August, when the crypto market experienced a “flash crash” and investors panicked. But we shouldn’t still be seeing outflows in October.

But that’s exactly what appears to be happening. On Oct. 1, for example, the Fidelity Ethereum Fund saw nearly $25 million in outflows, its highest daily total ever. Some crypto traders have even suggested that Ethereum might fall 10%-15% lower if these investor outflows don’t stop.

And if you look at numbers from CoinShares, which tracks institutional buying of different cryptocurrencies, the picture appears to be much the same. Every week, CoinShares puts out a digital assets report, showing flows into and out of popular cryptocurrencies, based on the holdings of large institutional investors. And in six of the past seven weeks, there have been net outflows for Ethereum. During one week in September, for example, nearly $100 million flowed out of Ethereum.

Why are billionaires selling?

So why are billionaire investors deciding to sell Ethereum? The easiest answer is that these investors simply don’t see the same upside potential with Ethereum that they see with Bitcoin.

Another answer could be that these investors do not see the same diversification benefits with Ethereum. Once you hold Bitcoin in your portfolio, do you really need to hold Ethereum to get exposure to the crypto asset class?

Moreover, Bitcoin is seen as a potential “risk off” asset, giving investors a potential hedge against inflation and economic downturn. In contrast, Ethereum is seen as primarily a “risk on” asset. As long as investors have serious concerns about the future direction of the U.S. economy, Ethereum may have a hard time gaining any traction.

Should you buy Ethereum?

If the smart money is deciding to sell Ethereum, you should obviously take notice, especially given that investor inflows into other cryptocurrencies appear to be recovering. Bitcoin inflows seem to be on the mend, as are those of Solana (CRYPTO: SOL), the leading Ethereum competitor.

At the end of the day, it comes down to whether you are buying for the short term or the long term. If your investment horizon is 12 months or less, it probably makes sense to pump the brakes on Ethereum. But if it’s much longer, there’s still a case to be made for buying Ethereum, which remains a best-in-class cryptocurrency with a stellar track record of delivering massive returns to investors.

Dominic Basulto has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.

Crypto

Debate Brews Over Crypto Kiosks As Lawmakers Consider Potential Ban

Published

44 minutes ago

February 27, 2026

Press Room

Debate Brews Over Crypto Kiosks As Lawmakers Consider Potential Ban

Lawmakers Consider Crypto ATM Ban as Scam Losses Rise — Including in Central Minnesota

Minnesota lawmakers are considering banning cryptocurrency kiosks as scam losses continue to rise across the state—including in Central Minnesota.

There are currently about 350 crypto kiosks operating statewide, located in places like gas stations, convenience stores, and grocery stores. These machines allow users to deposit cash and convert it into cryptocurrency, which can then be sent electronically.

Law enforcement officials say scammers are increasingly directing victims to use these kiosks because once the money is sent, it is extremely difficult—if not impossible—to recover.

Police say scams often begin with a phone call, text, or online message. In many cases, scammers pose as government officials, tech support workers, or even romantic partners. Victims are eventually told to withdraw cash and deposit it into a crypto kiosk to “protect” their money or resolve a supposed emergency.

Central Minnesota has seen similar cases. Because St. Cloud serves as a regional hub for shopping and services, crypto kiosks are available locally, giving scammers access points to target area residents.

Some say kiosks also serve legitimate users

Despite the concerns, crypto kiosks do offer legitimate benefits. They allow people to purchase cryptocurrency quickly using cash, without needing a traditional bank account, credit card, or online exchange. Supporters say this can make cryptocurrency more accessible, especially for people who prefer cash transactions or have limited access to banking services.

Crypto kiosks can also be used to send money quickly, including international transfers, without relying on traditional wire services. Some users view them as a convenient way to invest in cryptocurrency or move money electronically without going through a bank.

Companies that operate the machines say the vast majority of transactions are legitimate and that kiosks include warnings about scams. They argue the focus should be on stopping scammers, not banning the machines entirely.

Lawmakers weighing next steps

Supporters of the proposed ban say removing the kiosks could help prevent fraud and protect vulnerable residents, particularly older adults. Law enforcement officials told lawmakers that crypto kiosk scams have resulted in significant financial losses statewide.

Minnesota passed regulations in 2024 requiring some safeguards, including limits on deposits for new users and refund requirements in certain fraud cases. But officials say scammers have continued to adapt.

The bill remains under consideration at the Capitol.

In the meantime, authorities urge Central Minnesota residents to be cautious. Officials emphasize that legitimate government agencies, law enforcement, and businesses will never ask someone to deposit cash into a cryptocurrency kiosk.

As cryptocurrency becomes more common, lawmakers are now weighing whether the risks to consumers outweigh the convenience and accessibility these machines provide.

10 (More) Hilariously Bad Google Reviews of Central MN Landmarks

Crypto

Cryptocurrency Investment Fraud: Bizman loses Rs 2.6 cr to crypto, investment fraud | Hyderabad News – The Times of India

Published

13 hours ago

February 26, 2026

Press Room

Hyderabad: A 69-year-old businessman from Somajiguda lost 2.65 crore allegedly in a cryptocurrency and stock investment fraud. Based on his complaint, Hyderabad Cyber Crime police have registered a case.The complainant was first contacted by a fraudster posing as Ramya Krishnan on Aug 30, 2025 through Facebook. She persuaded the victim to invest in a cryptocurrency and stock trading platform, Polyus Finance PFP Gold, hosted at the domain pfpgoldfx.vip, promising high returns to finance his proposed resort and apparel ventures.Fraudsters provided the victim a contact number for daily communication and sent screenshots showing notional profits credited in his wallet in USDT cryptocurrency. To build trust, the fraudster even allowed the victim a token withdrawal of 4,300 on Sept 12, 2025.Encouraged, the victim transferred over 2.65 crore in 10 transactions between Sept 10 and Dec 39, 2025 to various current accounts provided by the accused.When he attempted to withdraw his ‘earnings’, the accused demanded an additional 15% conversion commission. After he refused, the website became inaccessible and calls to the fraudsters went unanswered.Realising that he was duped, the victim filed an online report on the National Cybercrime Reporting Portal (NCRP) before approaching the Cyber Crime police on Feb 25.Based on his complaint, a case was registered under Sections 66C and 66D of the Information Technology Act and Sections 111(2)(b) (Organised crime), 318(4) (Cheating), 319(2) (Cheating by personation), 336(3) (Forgery for purpose of cheating), 338 (Forgery of valuable security, will, etc.) and 340(2) (Using as genuine a forged document or electronic record) of the Bharatiya Nyaya Sanhita on Wednesday. Police were analysing financial transactions to identify and arrest the accused.

Crypto

Terror groups receive $1.7b. from Iran through Binance | The Jerusalem Post

Published

1 day ago

February 26, 2026

Press Room

Terror groups receive .7b. from Iran through Binance | The Jerusalem Post

Iranians were able to access more than 1,500 Binance accounts last year, and $1.7 billion was transferred from two of them to terrorist proxies, The New York Times reported Monday.

That was a potential violation of global sanctions, the report said, citing company records and documents collected by internal investigators.

The cryptocurrency exchange site reportedly fired or suspended at least four employees cited in the internal investigation. The company blamed “violations of company protocol” relating to its clients’ data, the Times reported.

The report came days after The Jerusalem Post spoke with experts from blockchain intelligence platform NOMINIS.io about how the Iranian regime was evading Western sanctions through cryptocurrencies.

The regime maintains a steady income using cryptocurrency through oil sales to Russia and China, NOMINIS CEO Snir Levi said at the time.

Binance founder Changpeng Zhao, who pleaded guilty to failing to implement a program to prevent money laundering, arrives for his sentencing in federal district court in Seattle, Washington. (credit: REUTERS/Deborah Bloom)

Regarding the latest scandal, he told the Post this week: “The latest allegations about Binance come months after the lawsuit by the victims’ families of October 7 – the ongoing Balva [versus] Binance case.

The majority of the allegations can be easily confirmed by on-chain data. There are thousands of cases where money has been sent and received to and from wallets that have clear connections to Iran.”

Binance founder Changpeng Zhao is being sued by the families of American victims and hostages of the October 7 massacre. He has been accused of knowingly enabling Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran’s Islamic Revolutionary Guard Corps to transfer more than $1b. through its platform, including more than $50 million after the October 7 massacre.

Zhao pleaded guilty to anti-money-laundering violations in connection with Binance in 2023. US President Donald Trump pardoned him last October.

“They say what he did was not even a crime,” Trump told reporters last October. “It wasn’t a crime. That he was persecuted by the Biden administration, and so I gave him a pardon at the request of a lot of very good people.”

Binance representative Rachel Conlan said the accounts linked to the $1.7b. in Iranian transactions have been removed and the relevant authorities were informed.

“Any suggestion that Binance knowingly allowed sanctionable activity to continue unchecked is incorrect and defamatory,” she said, despite Zhao’s earlier admission of anti-money-laundering violations.

More than half a dozen compliance officials have left Binance, including a sanctions manager and the leader of the enterprise compliance team, over the past few months, the Times reported.

“No investigator was dismissed for raising compliance concerns or for reporting potential sanctions issues,” Conlan said in a statement to The Guardian.

Democrat senator opens inquiry into cryptocurrency company

While Conlan insisted there was no wrongdoing, US Sen. Richard Blumenthal (D-Connecticut) opened an inquiry into Binance on Tuesday, seeking records of the company’s dealings in Hong Kong , where funds have previously been transferred in a network against sanctions.

“Binance appears to have ignored warnings and recommendations to prevent Iranian money-laundering schemes on its cryptocurrency exchange,” Blumenthal wrote in a letter to Binance co-chief executive Richard Teng.

“According to documents obtained by the Times and the Journal, Binance was even warned that Hexa Whale was financing terrorist organizations such as the Yemeni Houthis, and internal investigators found cryptocurrency transfers to wallets associated with Iran’s Islamic Revolutionary Guards Corps and payments to crew members of Russia’s sanctions-evading shadow fleet of oil tankers,” he wrote.

“Instead of actually preventing illicit use, Binance has sought to evade accountability and influence the White House through lobbying and a financial partnership with World Liberty Financial (WLFI), the cryptocurrency firm owned by the sons of President Trump and his special envoy Steve Witkoff… This influence campaign has worked: In May 2025, the Securities and Exchange Commission announced that it was dismissing a lawsuit against Binance for lying to regulators and mishandling funds, followed in October by the stunning Presidential pardon of founder Changpeng Zhao.”

“The scale of the newly revealed illicit transfers – uncaught until nearly $2 billion flowed to sanctioned entities – and the unexplained firing of internal investigators call into question Binance’s compliance with American sanctions and banking laws, and its 2023 agreement to resolve the previous federal investigation,” Blumenthal wrote.