US Spot Bitcoin ETFs Experience $643 Million Outflow Following Binance Hack

On October 30, US spot Bitcoin ETFs recorded net outflows of $643 million, a sharp reversal following four consecutive days of inflows. This significant withdrawal coincided with a major security incident at Binance, where approximately $6.3 billion was hacked from the exchange.

BlackRock’s iShares Bitcoin Trust (IBIT) was the largest contributor to the outflows, accounting for about $234 million. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed closely with around $201 million in redemptions. Other Bitcoin products also experienced withdrawals, contributing to the total.

In addition, Ethereum ETFs saw a loss of $156 million on the same day, with BlackRock’s iShares Ethereum Trust (ETHA) leading this decline with outflows of approximately $76.6 million. The cumulative net assets across US spot Bitcoin ETFs remain substantial, ranging between $98 billion and $104 billion.

The timing of the outflows is particularly notable, as they occurred just after a streak of inflows totaling between $424 million and $441 million from October 26 to October 29. The Binance hack, linked to a North Korean hacking unit, may have influenced investor sentiment, leading to the sudden withdrawals.

While the $643 million outflow is significant, it represents only about 0.7% of the total assets held in these funds. In contrast, the $156 million outflow from Ethereum ETFs represents a larger percentage of their total assets, which are estimated between $13 billion and $14 billion.

Market analysts are cautious about interpreting these outflows as a warning sign, as similar patterns have occurred in the past following major security incidents. The coming days will be crucial in determining whether this trend continues or if inflows will resume.