Ethereum (ETH) Taps New 60-Day Peaks as Institutions Amplify Bitcoin Demand

Ethereum (ETH) extended its bullish momentum on Friday, surging to a fresh 60-day high above $1,865. The rally comes as institutional demand from Bitcoin ETFs reach historic-peaks.

(Pocket-lint) - Ethereum (ETH) extended its bullish momentum on Friday, surging to a fresh 60-day high above $1,865. The rally comes as institutional demand from Bitcoin ETFs reached historic-peaks.

Institutions ramped up their pursuit of Bitcoin (BTC) on Friday, setting the stage for further cryptocurrency gains, while UK regulators moved to ban crypto-backed lending.

Ethereum extended its bullish momentum on Friday, surging to a fresh 60-day high above $1,865. The rally comes as institutional demand from Bitcoin ETFs reached unprecedented levels.

Unprecedented Inflows Push Bitcoin ETFs Past $4 Billion in a Week

Insiders noted that institutions made a collective push into Bitcoin ETFs, leading to over $4 billion in cumulative acquisitions during nine consecutive days of buying. This began on April 24 and continued until Friday.

The development has also spread bullish tailwinds towards the broader altcoin sector, with ETH price benefitting indirectly from renewed investor interest on Friday.

Moreover, MicroStrategy announced plans to raise additional capital for Bitcoin accumulation, reinforcing market expectations for sustained institutional engagement.

While Ethereum's own use case differs, its market value has historically responded positively to macro crypto inflows, as traders anticipate secondary momentum into Layer-1 altcoins.

UK Regulators Move to Ban Crypto Loans with Credit Cards

The UK's Financial Conduct Authority (FCA) has proposed a ban on crypto-backed lending, signaling a potential regulatory shift that could have implications for decentralized finance (DeFi).

Announced on Friday, the policy targets the growing practice of issuing loans against cryptocurrency assets, raising concerns about consumer protection and the broader financial system.

The proposal comes after closed-door consultations with the Bank of England and other global financial institutions. It focuses on the risks posed by under-collateralized loans and opaque decentralized credit systems.

The FCA's framework would prevent UK platforms from offering loans secured by crypto assets, including stablecoins and major tokens like Bitcoin and Ether.

The draft legislation is now open for public feedback, with a 90-day comment window before final parliamentary review, scheduled for the third quarter of 2025.

DeFi Crackdown Could Further Erode Ethereum's Market Share

The FCA's proposed ban could deliver a significant blow to the DeFi ecosystem—an area where Ethereum remains the dominant platform.

As of Friday, total DeFi lending and staking value locked (TVL) reached $101.7 billion, with Ethereum holding $51.9 billion, or 52% of the total market share. This is notably down from its 71% peak during the 2021 bull market, according to DeFiLlama.

Should the UK's ban proceed, major Ethereum-hosted protocols like Aave, Compound, and Lido may see declining user activity and capital inflow from the region. In particular, UK-based liquidity providers and institutional platforms might reduce their exposure to DeFi, weakening the ecosystem's depth.

Staking rewards, which depend heavily on borrowing volume and token utility, are also at risk. Lower lending activity could compress yields, potentially triggering a cascading withdrawal effect across Ethereum's staking protocols. In this scenario, Ethereum's overall cryptocurrency market share could decline further.