Spot Bitcoin ETFs See Largest Daily Outflow Since June After Binance Hack

TLDR

• US spot bitcoin ETFs saw $643.3 million in net outflows on Friday, the largest single-day outflow since June 25.
• Spot Ethereum ETFs lost $155.9 million on Friday, their largest daily outflow since Oct. 7.
• The outflows followed a $6.3 billion hack at Binance on Thursday, which the FBI has linked to North Korean hackers.
• Binance recorded about $3.64 billion in net outflows in the first nine and a half hours after restoring withdrawals on Sunday.
• Bitcoin traded at $78,491 and ether at $2,296 late Sunday.

US spot bitcoin exchange-traded funds recorded their largest daily net outflows in four months on Friday. The move came one day after a $6.3 billion hack at crypto exchange Binance.

Spot bitcoin ETFs saw $643.3 million leave the funds on Friday, according to SoSoValue data. It was the largest single-day outflow since June 25.

For the week ending Oct. 30, the bitcoin funds posted $202.6 million in total outflows.

Ether funds also saw money leave. Spot Ethereum ETFs recorded $155.9 million in net outflows on Friday, their largest since Oct. 7. Weekly outflows for the ether funds reached $431.5 million.

Binance Hack Hits Market Sentiment

The outflows followed the largest crypto hack on record. On Thursday, attackers drained about $6.3 billion from Binance’s hot wallets.

The FBI has identified the attackers as North Korean hackers.

Binance began restoring withdrawals on Sunday. The exchange said it saw roughly $3.64 billion in net outflows in the first nine and a half hours after withdrawals reopened.

Jeff Ko, chief analyst at ViaBTC, described the ETF outflows as a “sentiment shock.” He said spot ETF holders have no direct exposure to Binance because the bitcoin backing the funds is held with regulated custodians.

“In context, a roughly $640 million outflow is actually modest against the total ETF assets,” Ko said.

Rick Maeda, head of markets at Laevitas, shared a similar view. He noted that spot bitcoin ETFs hold total net assets of $98.14 billion.

“In scale, the $643 million outflow is still under 1% of spot [bitcoin] ETF assets so this was simply a de-risking day, and not capitulation or a loss in institutional confidence,” Maeda said.

Analysts Expect Caution in the Near Term

Analysts said investors are likely to stay careful for now. Maeda pointed to the Bybit hack in the first quarter of 2025 as a similar case.

He said he expects “stabilization or modest outflows in the near term rather than a snap-back as long as the hack can be contained at its current situation.”

Dominick John, an analyst at Zeus Research, also expects demand to remain cautious. He said a sustained recovery in ETF inflows depends on “improved market stability, restored liquidity and stronger investor confidence.”

Maeda said the mood in crypto “seems to be one of caution rather than fear.” He added that markets will react to updates about the hack and to events on the calendar, such as the US midterm elections.

Ko also pointed to the midterms as a key event. He said the balance of power in Congress could affect how crypto market structure legislation moves forward.

“[Bitcoin] has absorbed the hack quite resiliently,” Ko said.

The Crypto Fear and Greed Index stood at 37 on Sunday. That reading sits in the fear range of the index, which runs from 0 to 100.

Bitcoin rose 1% over 24 hours to trade at $78,491 as of 11:20 p.m. ET Sunday. Ether climbed 1.3% to $2,296, according to The Block’s price data.

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