Three significant developments shaped cryptocurrency markets this week. On Tuesday, decentralized finance protocol Echo Protocol was exploited after an attacker minted approximately 1,000 unauthorized eBTC on the Monad blockchain, worth around $76.7 million, according to blockchain security firm PeckShield and analytics platform Lookonchain. Simultaneously, cryptocurrency investment products posted heavy outflows last week as investors reduced risk amid inflation fears and geopolitical tensions, while Goldman Sachs sharply reduced its exposure to cryptocurrency ETFs in the first quarter of 2026, eliminating its holdings in XRP-linked products entirely.
The broader context reflects ongoing security challenges in decentralized finance and shifting institutional sentiment. This latest exploit marks at least the 12th protocol compromise this month, following incidents at THORChain, Verus Protocol's Ethereum bridge, Transit Finance, TrustedVolumes, and Ekubo.
## Echo Protocol's eBTC Exploited for $77M in Admin Key Compromise
Echo Protocol confirmed the security incident on Tuesday, stating: "We are currently investigating a security incident impacting the Echo bridge on Monad. All cross-chain transactions remain suspended while the investigation is underway."
According to PeckShield's analysis, the attacker followed a multi-step laundering process. The hacker deposited 45 eBTC worth approximately $3.45 million into DeFi lending and liquidity management protocol Curvance. Against this collateral, the attacker borrowed 11.3 wrapped Bitcoin (wBTC) valued at $868,000, bridged the tokens to Ethereum, swapped them for ETH, and sent 384 ETH worth about $822,000 to the Tornado Cash mixing service.
According to DeBank, the attacker still holds 955 eBTC worth approximately $73 million as of the reporting date.
## Cryptocurrency Funds See $1B in Outflows Amid Geopolitical Uncertainty
Digital asset exchange-traded products (ETPs) recorded $1.07 billion in net outflows last week, according to CoinShares' weekly report. This ended a six-week streak of inflows and marked the third-largest weekly outflow of the year.
Bitcoin (BTC) investment products accounted for the majority of withdrawals with $982 million in outflows. Ether (ETH) products experienced $249 million in outflows, representing their largest outflow since the week ending January 30.
Alternative cryptocurrencies showed divergent trends. XRP (XRP) investment products drew in $67.5 million, while Solana (SOL) funds added inflows of $55.1 million. Despite the week's outflows, both Bitcoin and Ether ETPs remained firmly positive on a year-to-date basis.
## Goldman Sachs Exits XRP ETF Exposure in Q1 2026
Goldman Sachs sharply reduced its exposure to cryptocurrency ETFs in the first quarter of 2026. No XRP-linked ETFs appeared in the bank's Q1 Form 13F filing with the US Securities and Exchange Commission.
In its Q4 2025 13F filing, Goldman Sachs reported holding nearly $154 million worth of XRP-related ETFs from Bitwise, Franklin Templeton, Grayscale, and 21Shares. The bank's Q1 2026 filing showed a complete elimination of this position.
Quarterly 13F filings are closely watched by crypto investors as they provide rare visibility into how major institutional asset managers allocate capital across digital-asset investment products. The bank's pullback from XRP products occurred even as broader institutional interest in digital-asset ETFs remained intact.
