U.S. spot bitcoin ETFs post biggest daily outflow in four months after Binance hack

Traders Union
All News
Crypto
Bitcoin ETF outflows after hack

Highlights

U.S. spot bitcoin ETFs saw $643.3 million in net outflows on Friday, the largest daily withdrawal since June 25, following the reported Binance hack.
Spot Ethereum ETFs experienced $155.9 million in outflows on Friday, with weekly outflows reaching $431.5 million, marking their biggest daily withdrawal since October 7.
Binance lost about $6.3 billion to hackers identified as North Korean by the FBI, and recorded $3.64 billion in net outflows within 9.5 hours of resuming withdrawals.

ETF withdrawals follow security shock

As reported by The Block, citing SoSoValue, U.S. spot bitcoin exchange-traded funds record $643.3 million in net outflows on Friday, the largest single-day withdrawal since June 25. For the week ending Oct. 30, the bitcoin funds post net outflows of $202.6 million.

Spot Ethereum ETFs also record heavy withdrawals, with $155.9 million leaving the funds on Friday, their biggest daily outflow since Oct. 7. Weekly outflows for the ether products reach $431.5 million.

The withdrawals come after Binance is hit by what the article describes as the largest crypto hack to date. Attackers identified by the FBI as North Korean hackers drain about $6.3 billion from the exchange's hot wallets on Thursday.

Binance then records roughly $3.64 billion in net outflows in the first nine and a half hours after it begins restoring withdrawals on Sunday.

Analysts see caution, not capitulation

Despite the ETF outflows, bitcoin rises 1% over the past 24 hours to $78,491 as of 11:20 p.m. ET Sunday, while ether gains 1.3% to $2,296, according to The Block's crypto price page.

Jeff Ko, chief analyst at ViaBTC, says he views the ETF withdrawals mainly as a sentiment shock rather than evidence of direct exposure to Binance risk. He says spot ETF holders do not hold assets at Binance because the underlying bitcoin is kept with regulated custodians, and adds that an outflow of about $640 million remains modest relative to overall ETF assets.

Rick Maeda, head of markets at Laevitas, says the Friday withdrawal is still less than 1% of spot bitcoin ETF assets, which total $98.14 billion. He describes the move as a de-risking day rather than a sign of capitulation or a broader loss of institutional confidence.

Even so, analysts expect investor caution to persist in the near term. Dominick John of Zeus Research says a sustained recovery in ETF inflows likely depends on improved market stability, restored liquidity and stronger investor confidence.

Our earlier article on India’s disinvestment programme explained that most proceeds since FY 2016 have come via market-based routes such as ETFs, public issues and buybacks, while strategic sales contributed a comparatively small share. It also highlighted how the proposed IDBI Bank stake sale could materially lift the current year’s totals and potentially help exceed the government’s budgeted disinvestment target.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.