TheBlock
U.S. spot bitcoin ETFs recorded $643.3 million in net outflows on Friday, their largest single-day withdrawal in four months, after attackers drained about $6.3 billion from Binance hot wallets on Thursday. Spot ether ETFs lost $155.9 million, their largest daily outflow since Oct. 7. For the week ending Oct. 30, bitcoin funds saw $202.6 million in net outflows and ether funds lost $431.5 million.
Why it matters
The timing links a major security shock to a sharp pullback in ETF demand, but analysts cautioned against reading the withdrawals as evidence of institutional capitulation. ViaBTC chief analyst Jeff Ko said ETF holders have no direct Binance exposure because the underlying bitcoin is held with regulated custodians. He described the outflow as a sentiment shock and said bitcoin had absorbed the hack resiliently.
Laevitas head of markets Rick Maeda said the $643 million withdrawal was below 1% of the spot bitcoin ETFs' $98.14 billion in total net assets, making it a de-risking day rather than a broad loss of institutional confidence. Still, he expects stabilization or modest outflows in the near term, rather than a quick rebound, while the hack remains unresolved.
Market impact
Binance reported roughly $3.64 billion in net outflows during the first nine and a half hours after it began restoring withdrawals on Sunday. The FBI identified the attackers as North Korean hackers. The Crypto Fear and Greed Index stood at 37, in fear territory, though Maeda characterized sentiment as caution rather than outright fear.
Bitcoin was up 1% at $78,491 and ether rose 1.3% to $2,296 as of 11:20 p.m. ET Sunday. Analysts said a sustained recovery in ETF inflows depends on improved stability, restored liquidity and stronger confidence. Traders are also watching U.S. midterm elections, which could affect the outlook for crypto market-structure legislation.
Frequently asked questions
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How large were Friday's spot bitcoin ETF outflows?
U.S. spot bitcoin ETFs recorded $643.3 million in net outflows, their largest single-day withdrawal in four months.
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How did spot ether ETFs fare on Friday?
Spot ether ETFs saw $155.9 million in net outflows, their largest daily withdrawal since Oct. 7.
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Why did analysts say the bitcoin ETF outflows were not capitulation?
The $643.3 million withdrawal was under 1% of the funds' $98.14 billion in total net assets. ETF holders also have no direct Binance exposure because underlying bitcoin is held with regulated custodians.
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What did Binance report after withdrawals began reopening?
Binance reported roughly $3.64 billion in net outflows during the first nine and a half hours after it began restoring withdrawals on Sunday.
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What factors could support a recovery in ETF inflows?
Analysts cited improved market stability, restored liquidity and stronger investor confidence. They also said near-term flows could remain cautious while the hack's impact is being contained.
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