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Why Is Vitalik Buterin Selling Ethereum (ETH)?

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Ethereum (ETH) Price Performance

Ethereum co-founder Vitalik Buterin has recently offloaded a small portion of his ETH holdings, selling just over 700 coins in a series of on-chain transactions.

The sales were tracked by blockchain analytics platforms. They appear to align with a previously disclosed plan to fund long-term initiatives, rather than a market-driven liquidation.

Vitalik Buterin Sells Over 700 ETH in Planned Funding Move

Lookonchain reported that Buterin sold 211.84 ETH for approximately 500,000 USDC. He transferred the full amount to Kanro, a philanthropic entity established by the Ethereum co-founder. Kanro supports research and initiatives focused on combating infectious diseases, particularly after the COVID-19 pandemic.

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Buterin has a track record of channeling crypto asset sales into charitable causes. In January 2025, he sold 28 different meme coins worth approximately 984,000 USDC. The executive directed the proceeds to Kanro, reinforcing his long-standing commitment to philanthropy.

Following the initial ETH sale, Buterin continued selling. Lookonchain highlighted that he offloaded another 493 ETH. Together, these actions brought the total to 704.84 ETH, worth approximately $1.63 million at current market prices.

The sales are not a total surprise. In a post published last week on X (formerly Twitter), Buterin said he had withdrawn 16,384 ETH to be deployed toward long-term goals over the next few years.

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“In these five years, the Ethereum Foundation is entering a period of mild austerity,” he stated.”To this end, my own share of the austerity is that I am personally taking on responsibilities that might in another time have been ‘special projects’ of the EF.”

He explained that the funds would support the development of open-source, secure, and verifiable software and hardware across areas such as finance, communications, governance, operating systems, secure hardware, and biotech, including both personal and public health. Buterin also noted that he is exploring secure decentralized staking options to generate additional funding over time.

“The Ethereum Foundation will continue with a steadfast focus on developing Ethereum, with that goal in mind. ‘Ethereum everywhere’ is nice, but the primary priority is ‘Ethereum for people who need it,’ Not corposlop, but self-sovereignty, and the baseline infrastructure that enables cooperation without domination,” Buterin added.

According to the latest data from Arkham, Buterin still holds 235,268 ETH worth approximately $549.2 million, alongside smaller allocations in WETH and aETHwETH. His overall portfolio is valued at more than $569 million, down from over $800 million amid broader market headwinds that have pushed asset prices lower.

Meanwhile, Buterin’s ETH sales appeared to have little to no immediate impact on the asset’s market performance. Ethereum, the second-largest cryptocurrency by market capitalization, continued to move in line with the broader market, which has shown signs of recovery.

Ethereum (ETH) Price Performance
Ethereum (ETH) Price Performance. Source: BeInCrypto Markets

According to BeInCrypto Markets data, ETH gained approximately 5% over the past 24 hours. At the time of writing, it was trading at $2,312.6.

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Morgan Stanley’s bitcoin ETF opens today, giving BlackRock’s $55 billion IBIT fund its toughest rival yet

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Morgan Stanley's bitcoin ETF opens today, giving BlackRock’s $55 billion IBIT fund its toughest rival yet

BlackRock’s most successful exchange-traded fund (ETF) is facing its clearest challenge yet, as Morgan Stanley rolls out a cheaper rival with direct access to trillions in client capital.

Morgan Stanley’s ETF, trading under MSBT, began trading Tuesday with a 0.14% expense ratio, below the iShares Bitcoin Trust’s (IBIT) 0.25%. The difference is narrow but lands in a market where price is one of the few levers investors can pull.

Each spot bitcoin ETF holds bitcoin and tracks its price. That leaves cost, liquidity and access as the main points of difference. IBIT has led on scale and trading activity since launch, becoming the most liquid vehicle for both shares and options tied to bitcoin ETFs with roughly $55 billion in assets-under-management.

That liquidity gives IBIT an edge that may be hard to replicate.

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“The launch will impact things but it will be interesting to see if it can actually siphon assets from other funds,” said James Seyffart, ETF analyst at Bloomberg Intelligence. “IBIT is the most liquid ETF for trading and in the options market and it’s unlikely MSBT will ever compete with that. At least not anytime remotely soon.”

Still, Morgan Stanley’s entry changes the competitive balance.

The bank can tap its vast wealth management network, where advisors can shift client allocations with a single trade. In practice, that means new demand may be directed toward MSBT rather than existing funds like IBIT.

“Distribution is king in the ETF space, and Morgan Stanley has that in spades with its army of wealth managers,” said Nate Geraci, president of the ETF Store. “Combined with MSBT being the lowest-cost spot bitcoin ETF on the market, that’s a strong recipe for success.”

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Geraci added that MSBT, which uses undercuts IBIT by 11 basis points, a gap large enough to draw attention from both investors and BlackRock.

IBIT’s position reflects how the market has evolved. Early inflows favored large, trusted issuers with deep liquidity. Over time, as more trusted names have entered the market, fee sensitivity has grown.

Morgan Stanley’s launch may speed up that shift, even if IBIT retains its lead in trading volume.

The result is a more defined split in the market. IBIT offers depth and liquidity for active traders.

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Newer entrants like MSBT compete on cost and distribution. Morgan Stanley’s wealth management arm oversees trillions in client assets and has one of the largest adviser networks in the industry, giving the bank a steep advantage. As more capital moves through financial advisors rather than direct trading, that channel may carry increasing weight.

For now, IBIT remains the benchmark. But with fees falling and new entrants targeting its position, its grip on flows may face its first sustained test.

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South Korea Tightens Crypto Withdrawal Delay Exemptions

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South Korea Tightens Crypto Withdrawal Delay Exemptions

South Korea’s financial regulator said it will tighten the exception rules under crypto exchanges’ withdrawal-delay system after finding that scam-linked accounts granted exemptions accounted for most voice-phishing-related losses. 

The Financial Services Commission (FSC) said Wednesday that the strengthened framework, developed with the Financial Supervisory Service (FSS) and the Digital Asset eXchange Alliance (DAXA), will impose unified standards on when users can bypass withdrawal delays. 

The regulator said exchanges had been applying their own exception criteria with no clear minimum standard, creating loopholes that let bad actors quickly move funds if they meet easy requirements such as account age or trading history. 

From June to September 2025, accounts granted withdrawal-delay exemptions made up 59% of fraudulent accounts and 75.5% of related losses at crypto exchanges, the FSC said.

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The move follows a wider South Korean push to tighten crypto exchange controls after voice-phishing abuse and operational-control failures, including fresh reforms announced this week after Bithumb’s Bitcoin (BTC) payout error.

Transfer route and protection device for voice phishing damage through virtual assets, translated to English. Source: FSC

Unified rules aim to curb misuse of withdrawal-delay exemptions

The FSC said that under the new rules, exchanges must assess factors like trading frequency, account history and deposit and withdrawal amounts when determining whether a user qualifies for a withdrawal-delay exemption. 

The regulator said the change is expected to reduce the number of users eligible for exemptions sharply. The FSC said a simulation showed the share of users eligible for exemptions would fall to around 1% under the new rules, but did not provide a baseline for comparison.

Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

The FSC said it will also strengthen oversight of users granted exemptions through periodic checks, including verification of the source of funds, and by building systems to monitor suspicious withdrawal activity. 

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The regulator added that they will continue reviewing the rules to prevent new circumvention methods and adjust as needed. 

The move adds to a broader push by South Korean regulators to tighten oversight of crypto exchanges following recent incidents. 

On Tuesday, the FSC ordered exchanges to reconcile internal ledgers with actual asset holdings every five minutes after an inspection linked to the Bithumb payout error found gaps in internal controls and risk management systems.

On Jan. 29, South Korea expanded crypto licensing scrutiny to cover exchanges and major shareholders. 

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Magazine: ‘Phantom Bitcoin’ checks, Drift hack linked to North Korea: Asia Express