Spot bitcoin ETFs post $643 million daily outflow after Binance hack
Bitcoin ETFs see biggest daily exit since June after Binance hack
US spot bitcoin exchange-traded funds (ETFs) — investment funds that hold bitcoin and trade on stock exchanges — recorded $643.3 million in net outflows on Friday, according to SoSoValue data. That was their largest single-day outflow since June 25, and it followed Thursday's roughly $6.3 billion hack at Binance, one of the world's largest crypto exchanges.
Spot Ethereum ETFs also saw money leave, with $155.9 million in net outflows on Friday, their largest since Oct. 7. Ether is the cryptocurrency that runs on the Ethereum network.
Key numbers
- Spot bitcoin ETFs lost $643.3 million on Friday — the biggest daily outflow since June 25.
- Bitcoin ETF weekly outflows for the week ending Oct. 30 totaled $202.6 million.
- Spot Ethereum ETFs lost $155.9 million on Friday and $431.5 million for the week.
- Hackers drained about $6.3 billion from Binance's hot wallets (online wallets connected to the internet) on Thursday.
- The FBI has identified the attackers as North Korean hackers.
- Binance recorded roughly $3.64 billion in net outflows in the first nine and a half hours after it began restoring withdrawals on Sunday.
- Bitcoin rose about 1% over the past 24 hours to $78,491 as of 11:20 p.m. ET Sunday; ether climbed 1.3% to $2,296, according to The Block's crypto price page.
Analysts see de-risking, not a loss of confidence
Several analysts told The Block they view the outflows as a short-term reaction rather than a deeper problem.
Jeff Ko, chief analyst of ViaBTC, called the outflows more of a "sentiment shock." He noted that spot ETF holders have no direct exposure to Binance because the underlying bitcoin is held with regulated custodians, and that a roughly $640 million outflow is modest against total ETF assets.
Rick Maeda, head of markets at Laevitas, made a similar point. The $643 million outflow was under 1% of spot bitcoin ETF net assets, which stood at $98.14 billion. "This was simply a de-risking day, and not capitulation or a loss in institutional confidence," he said.
Looking ahead, Maeda pointed to Bybit's hack in Q1 2025 as a precedent. He said he expects stabilization or modest outflows in the near term rather than a quick rebound, as long as the hack stays contained.
Dominick John, an analyst at Zeus Research, said near-term demand is likely to stay cautious, with a sustained recovery in ETF inflows depending on improved market stability, restored liquidity and stronger investor confidence.
Market mood and what traders are watching
The Crypto Fear and Greed Index — a measure of market sentiment — stood at 37 on Sunday, in fear territory. Still, Maeda described the mood as caution rather than fear, and said markets will be sensitive to headlines about the hack and to macro events such as the US midterm elections.
Ko also flagged the midterms, saying bitcoin has absorbed the hack quite resiliently and that attention is shifting to the elections, where the balance of power in Congress could affect how crypto market structure legislation moves forward.
What is confirmed and what is not
Confirmed from the sources: the outflow figures from SoSoValue, the size and timing of the Binance hack, the FBI's identification of North Korean hackers, Binance's post-hack outflow figure, and the price readings as of Sunday night.
Analyst comments about sentiment and the expected pace of future flows are opinion and forecasts, not confirmed facts.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.