Key Takeaways
- US spot bitcoin ETFs experienced $643.3 million in net withdrawals on Friday, marking the highest single-day exodus since June 25.
- Spot Ethereum ETFs registered $155.9 million in outflows on Friday, representing the steepest decline since Oct. 7.
- The withdrawals occurred following Thursday’s $6.3 billion security breach at Binance, which the FBI attributes to North Korean threat actors.
- Binance witnessed approximately $3.64 billion in net withdrawals during the initial nine and a half hours after resuming withdrawal services on Sunday.
- Bitcoin was trading at $78,491 and ether at $2,296 late Sunday.
US spot bitcoin exchange-traded funds experienced their steepest daily net withdrawals in four months on Friday. The exodus occurred just 24 hours after a massive $6.3 billion security breach struck cryptocurrency exchange Binance.
Spot bitcoin ETFs witnessed $643.3 million departing the funds on Friday, according to SoSoValue data. This represented the most significant single-day withdrawal since June 25.
For the trading week concluding Oct. 30, bitcoin-focused funds registered $202.6 million in cumulative outflows.
Ethereum-based funds similarly experienced capital flight. Spot Ethereum ETFs logged $155.9 million in net withdrawals on Friday, their steepest decline since Oct. 7. The ether funds accumulated $431.5 million in weekly outflows.
Record Exchange Breach Impacts Market Confidence
The withdrawals came on the heels of the cryptocurrency industry’s largest security breach to date. On Thursday, malicious actors extracted approximately $6.3 billion from Binance’s hot storage wallets.
The FBI has attributed the attack to North Korean hackers.
Binance commenced restoring withdrawal functionality on Sunday. The platform reported experiencing roughly $3.64 billion in net outflows during the first nine and a half hours following the restoration of withdrawal services.
Jeff Ko, chief analyst at ViaBTC, characterized the ETF withdrawals as a “sentiment shock.” He emphasized that spot ETF investors maintain no direct vulnerability to Binance since the bitcoin supporting these funds remains with regulated custodial services.
“In context, a roughly $640 million outflow is actually modest against the total ETF assets,” Ko said.
Rick Maeda, head of markets at Laevitas, expressed a comparable perspective. He observed that spot bitcoin ETFs maintain 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.
Market Observers Anticipate Continued Wariness
Market analysts suggested investors will likely maintain a defensive posture in the immediate future. Maeda referenced the Bybit security incident during the first quarter of 2025 as a comparable scenario.
He indicated he anticipates “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, similarly forecasts continued cautious demand. He stated that a sustained rebound in ETF capital inflows hinges on “improved market stability, restored liquidity and stronger investor confidence.”
Maeda characterized the prevailing sentiment in cryptocurrency markets as “one of caution rather than fear.” He noted that markets will respond to developments regarding the security breach and to scheduled events, including the US midterm elections.
Ko also highlighted the midterms as a critical event. He suggested the congressional power balance could influence the advancement of crypto market structure legislation.
“[Bitcoin] has absorbed the hack quite resiliently,” Ko said.
The Crypto Fear and Greed Index registered 37 on Sunday. This measurement falls within the fear territory of the index, which spans from 0 to 100.
Bitcoin increased 1% over 24 hours to trade at $78,491 as of 11:20 p.m. ET Sunday. Ether gained 1.3% to $2,296, according to The Block’s price data.
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