Today in crypto, US spot Bitcoin and Ether exchange-traded funds (ETFs) opened the week with over $750 million in outflows after last Friday’s massive crypto crash, Bhutan migrated its national ID system from Polygon to Ethereum, and California enacted a new law setting guardrails on AI chatbots.
US spot Bitcoin, Ether ETFs shed $755 million after crypto market crash
Spot Bitcoin and Ether ETFs in the United States saw combined outflows of more than $755 million on Monday following record crypto liquidations over the weekend.
Bitcoin (BTC) ETFs recorded a net outflow of $326.52 million, according to SoSoValue data. Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw the largest outflow at $93.28 million, while Grayscale’s Bitcoin Trust (GBTC) recorded a $145.39 million outflow.
Other notable funds, including Ark 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB), also posted daily outflows of $21.12 million and $115.64 million, respectively. However, BlackRock’s iShares Bitcoin Trust (IBIT) saw $60.36 million in inflows.
As of writing, total cumulative inflows remained at $62.44 billion, with total net assets across all spot BTC ETFs reaching $157.18 billion, or 6.81% of Bitcoin’s market cap. Overall, the funds saw $2.71 billion in inflows last week.
Ether (ETH) ETFs registered $428.52 million in outflows on Monday. BlackRock’s iShares Ethereum Trust (ETHA) saw the largest daily outflow of $310.13 million, followed by Grayscale’s Ethereum Trust (ETHE) at $20.99 million, and Fidelity’s Ethereum Fund (FETH) at $19.12 million.
Bhutan migrates its national ID system to Ethereum
The South Asian nation of Bhutan is migrating its self-sovereign ID system to Ethereum from Polygon, allowing its nearly 800,000 residents to verify their identities and access government services.
The integration with Ethereum has been completed, while the migration of all resident credentials is expected to finish by the first quarter of 2026, according to Ethereum Foundation President Aya Miyaguchi.
“It’s deeply inspiring to see a nation commit to empowering its citizens with self-sovereign identity,” Miyaguchi posted to X on Monday, adding that the Ethereum integration was a world-first.
Integrating a blockchain-based solution into a government’s national ID system has long been touted as a promising crypto use case, due to its immutability, transparency and privacy features, particularly when zero-knowledge proofs are implemented.
California governor signs laws establishing safeguards over AI chatbots
California Governor Gavin Newsom announced that the US state would establish regulatory safeguards for social media platforms and AI companion chatbots in an effort to protect children.
In a Monday notice, the governor’s office said Newsom had signed several bills into law that will require platforms to add age verification features, protocols to address suicide and self-harm, and warnings for companion chatbots. The AI bill, SB 243, was introduced by state Senators Steve Padilla and Josh Becker in January.
Padilla cited examples of children communicating with AI companion bots, allegedly resulting in some instances of encouraging suicide. The bill requires platforms to disclose to minors that the chatbots are AI-generated and may not be suitable for children, according to Padilla.
“This technology can be a powerful educational and research tool, but left to their own devices the Tech Industry is incentivized to capture young people’s attention and hold it at the expense of their real world relationships,” Padilla said in September.
The law will likely impact social media companies and websites offering services to California residents using AI tools, potentially including decentralized social media and gaming platforms. In addition to the chatbot safeguards, the bills aim to narrow claims of the technology “act[ing] autonomously” for companies to escape liability.
SB 243 is expected to go into effect in January 2026.
