Blast Shuts Down Ethereum L2 as Bitcoin ETFs See $103M Inflow

Blast is winding down its Ethereum layer-2 network after determining that operating expenses outpaced revenue, with no "credible path" to economic sustainability. The platform, launched in 2023 by Blur founder Tieshun "Pacman" Roquerre, attracted over $2 billion in deposits before its February 2024 mainnet debut by offering native yield on Ether and stablecoins alongside anticipated airdrop incentives. Blast's DeFi total value locked has plunged more than 98% from its roughly $2.2 billion peak in June 2024. The team is shortening its withdrawal delay to 24 hours and temporarily pausing withdrawals for approximately one week to unwind assets held through Lido, giving users until Oct. 26 to withdraw through Blast's interface. Assets will remain accessible after the deadline via direct interaction with the network's bridge contracts on Ethereum mainnet.

US spot Bitcoin exchange-traded funds opened October with $102.7 million in net inflows on Thursday, reversing Wednesday's $148.7 million in net outflows, according to SoSoValue data. The positive start follows the strongest quarter of 2026, with Q3 delivering $6.34 billion in net inflows including $2.65 billion in September, during which Bitcoin rose 42.7%. Combined ETF net assets climbed to $109.3 billion, with cumulative net inflows reaching $57.6 billion. Bitcoin traded at approximately $85,900, up 2.1% over 24 hours, while Alternative.me's Crypto Fear & Greed Index slipped slightly to 72, remaining in "Greed" territory.

The US Securities and Exchange Commission has proposed easing crypto custody requirements for investment advisers and funds, potentially removing a significant regulatory barrier that has kept some firms from offering digital asset products. The move signals a broader shift in the SEC's approach to crypto oversight under its current leadership. Together, the three developments—Blast's shutdown, ETF inflows, and regulatory easing—paint a picture of a maturing crypto market where weaker projects exit while institutional infrastructure continues to expand.