Crypto news today: Bitcoin ETF inflows return as Google expands custody and Ethereum fixes bug

Crypto markets saw a mix of institutional buying, infrastructure developments, security updates, and regulatory uncertainty on October 28. U.S. spot Bitcoin exchange-traded funds (ETFs) attracted $175.99 million in net inflows, Google Cloud introduced a new institutional crypto custody service, and Ethereum developers fixed a potential issue affecting its upcoming Glamsterdam upgrade.

Elsewhere, Hyperliquid continued to generate significant revenue through its HYPE buyback mechanism, PEPE rallied amid renewed whale activity, and Robinhood reported lower cryptocurrency trading revenue despite strong growth in prediction markets. Meanwhile, the Federal Reserve’s interest rate decision and renewed regulatory scrutiny of Polymarket remained important developments for traders to watch.

Here are the biggest crypto stories from today.

Bitcoin ETFs attract $175.99 million in fresh inflows

U.S. spot Bitcoin ETFs recorded $175.99 million in net inflows on October 27, according to SoSoValue data. All 12 tracked funds avoided net outflows during the session.

BlackRock’s iShares Bitcoin Trust (IBIT) led the category with $151.46 million in inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with $24.54 million.

Total net assets across the funds reached $103.94 billion, while cumulative historical net inflows stood at $57.47 billion.

The positive session followed a difficult period for institutional crypto investment products. Bitcoin and Ethereum ETFs had recently experienced substantial withdrawals, highlighting how quickly investor positioning can change during volatile market conditions.

Read more: Bitcoin spot ETFs attract $175.99 million as all 12 funds avoid outflows.

The latest figures show renewed demand for Bitcoin exposure through regulated products. However, a few positive sessions do not necessarily establish a sustained recovery, particularly while flows into other cryptocurrency investment products remain uneven.

Google Cloud introduces institutional crypto custody service

Google Cloud has introduced a private-preview cryptocurrency custody service based on multi-party computation (MPC), targeting banks and other financial institutions that need secure digital asset infrastructure.

The technology divides control of cryptographic keys across multiple participants or environments. Instead of relying on a single location holding the complete private key, transactions can be authorized through a coordinated signing process.

According to Google’s MPC custody service, commercial availability is planned for early 2027. Google’s parent company, Alphabet, is already using the technology to secure digital assets on Ethereum and Solana, while several financial institutions are testing the service.

Institutional custody is an important part of the broader digital asset market because banks need controls for protecting assets, authorizing transactions, and managing operational risks.

MPC can reduce the risks associated with a single compromised key, although it does not eliminate every security threat. Institutions still need strong access controls, monitoring, and recovery procedures.

The development highlights how established technology companies are expanding beyond blockchain infrastructure into services designed to help financial institutions hold and manage digital assets.

Ethereum developers fix a potential Glamsterdam upgrade bug

Ethereum developers have fixed a flaw in the upcoming Glamsterdam upgrade that could have redirected certain validator deposits to block builders instead of their intended destination.

The issue involved the handling of deposits waiting to be credited during a specific scenario. If triggered, the flaw could have affected funds intended to create new validators and complicated the recovery process for the staking service involved.

The fix was merged into Ethereum’s consensus specifications on October 26. The researcher who identified the issue described it as conditional, and no losses were reported.

The development is part of the preparation for Glamsterdam, an upcoming Ethereum upgrade that includes changes to how block production and builder responsibilities are handled.

The fix does not mean the entire upgrade is ready for deployment. Client implementation and further testing remain important steps before the changes can be introduced across the network.

Read more: Ethereum fixes a Glamsterdam bug that could have redirected staking deposits.

The incident underscores the importance of testing protocol changes before activation. Even flaws that do not result in actual losses can reveal potential risks in systems responsible for handling staking deposits and transaction execution.

Hyperliquid records $63.94 million in 30-day HYPE buyback-related revenue

Hyperliquid generated $63.94 million in 30-day holder revenue through its HYPE buyback mechanism, according to DefiLlama data.

The protocol’s Assistance Fund directs most eligible protocol fees toward purchasing HYPE on the open market. This connects activity on Hyperliquid’s derivatives platform with recurring purchases of its native token.

Hyperliquid has also been expanding its derivatives markets beyond cryptocurrencies, including products linked to traditional assets and pre-IPO companies.

Read more: Hyperliquid leads crypto protocols with $63.94 million in HYPE buybacks.

The figure measures value attributed to the protocol’s buyback mechanism over 30 days. It should not be interpreted as cash distributed directly to individual HYPE holders.

Buybacks can create recurring demand for a token, but they do not guarantee price appreciation. Token prices still depend on market conditions, trading activity, liquidity, and investor sentiment.

PEPE rallies nearly 12% as whale activity attracts attention

PEPE climbed nearly 12% on October 28 as traders reacted to reports that wallets linked by blockchain analytics firm Arkham Intelligence to Tron founder Justin Sun held approximately $51.25 million worth of the meme coin.

The reported holdings represent a potentially significant concentration of PEPE, although wallet attribution does not establish ownership with absolute certainty, and the reported connection does not reveal the holder’s intentions.

The rally also coincided with a sharp increase in derivatives activity. CoinGlass data showed PEPE futures volume rising 72.67% to $587.89 million, while open interest increased 7.10% to $316.14 million.

Traders were watching resistance near $0.0000050 as a key level for the next move.

Read more: PEPE price jumps 12% as Justin Sun-linked holdings reach $51 million.

The increase in futures volume shows that market participation intensified, but it does not establish whether traders are predominantly bullish or bearish. Higher leverage and crowded positions can also amplify price swings in both directions.

For now, PEPE’s rally reflects a combination of whale-related headlines, speculative trading, and changing market positioning rather than confirmation of a lasting trend.

Robinhood’s crypto revenue falls 55% despite prediction-market growth

Robinhood reported weaker-than-expected third-quarter profit as declining cryptocurrency trading activity and higher expenses offset growth in other parts of its business.

According to Reuters, Robinhood’s cryptocurrency transaction revenue fell 55% year over year to $120 million.

The company’s overall transaction-based revenue, however, rose 19% to $867 million. Stronger activity in options and event contracts helped offset the decline in crypto trading.

Revenue from event contracts increased more than sixfold, while options revenue grew 31%. Robinhood’s chief financial officer said prediction markets were approaching a $500 million annual business.

Despite the growth in these areas, Robinhood reported earnings of $0.51 per share, below analysts’ expectations of $0.55. Its shares fell 7% in after-hours trading following the results.

The figures illustrate a mixed picture for crypto-related businesses. A platform can continue expanding its overall trading activity while experiencing a substantial decline in cryptocurrency revenue.

The growing contribution from prediction markets also highlights how trading platforms are diversifying their products as crypto activity fluctuates.

Polymarket faces renewed CFTC scrutiny

Polymarket is facing renewed scrutiny from the U.S. Commodity Futures Trading Commission (CFTC) over whether it complied with a 2022 settlement requiring it to block U.S. users from its offshore prediction market.

According to Reuters reporting published October 27, the investigation is examining the platform’s location-detection controls, U.S. advertising, and the onboarding and customer protections of its newer U.S. platform.

The CFTC and Polymarket declined to comment on the reported investigation. The existence of an investigation does not establish that a violation occurred or guarantee enforcement action.

The scrutiny comes as prediction markets attract greater attention from traders, sports organizations, and regulators. These platforms allow users to trade contracts linked to the outcomes of events, but their regulatory treatment and customer-protection requirements remain contested.

The investigation could have implications for how prediction-market platforms manage geographic restrictions and verify who can access their products.

Federal Reserve decision puts macroeconomic risk back in focus

The Federal Reserve’s October 28 interest rate decision is another major event for crypto markets.

Markets widely expected the Fed to hold its benchmark interest rate at 3.75% - 4.00%, according to Fed preview. Investors are also watching Chair Kevin Warsh’s comments for clues about the direction of monetary policy and the possibility of another rate increase in December.

Inflation remains a concern. U.S. consumer price index inflation reached 3.7% year over year in September, up from 3.4% in August, according to the figures cited in the preview.

Interest rate expectations can influence crypto markets because they affect borrowing costs, the attractiveness of safer assets, and investors’ willingness to take risks. A more restrictive policy outlook could pressure speculative assets, while a more supportive outlook may improve sentiment.

However, the Fed’s decision alone will not determine Bitcoin’s direction. ETF flows, liquidity, geopolitical developments, and crypto-specific activity will continue to shape market movements.

At the time of writing, the October 28 decision had not yet been confirmed in the sources reviewed. Traders should check the Fed’s official statement and press conference before drawing conclusions about the outcome.

What today’s crypto developments mean for investors

October 28 brought several different signals for the digital asset market.

Bitcoin ETFs attracted fresh capital, Google Cloud expanded its institutional custody offering, and Ethereum developers addressed a potential upgrade issue before deployment. Hyperliquid’s buyback mechanism continued to generate significant reported revenue, while PEPE’s rally showed how quickly whale-related headlines and derivatives activity can affect speculative assets.

At the same time, Robinhood’s declining crypto revenue highlighted the uneven recovery in trading activity, and renewed scrutiny of Polymarket showed that regulatory questions remain important for crypto-adjacent businesses.

The common theme is that adoption and market performance are moving at different speeds. Institutional infrastructure continues to develop, but capital flows remain selective, speculative assets remain volatile, and regulatory uncertainty persists.

Investors will be watching the Federal Reserve’s decision, subsequent ETF flows, and further developments in crypto infrastructure and regulation for clues about the market’s next direction.