American spot bitcoin Bitcoin (BTC) exchange-traded funds registered their highest daily net redemptions in four months on Friday, coming on the heels of Thursday’s massive $6.3 billion security breach at Binance.
Based on figures from SoSoValue data, spot bitcoin ETFs experienced $643.3 million in net outflows on Friday, representing their heaviest single-day withdrawal velocity since June 25. Their total redemptions for the trading week closing on October 30 reached $202.6 million.
Spot Ethereum Ethereum (ETH) funds witnessed $155.9 million in net outflows on Friday, hitting their highest mark since October 7. The ether-based products logged weekly outflows totaling $431.5 million.
The ETF capital departures arrived in the wake of Binance suffering the biggest cryptocurrency exploit in history. Malicious actors, identified by the FBI as North Korean cybercriminals, extracted roughly $6.3 billion from the platform’s hot wallets on Thursday.
The digital asset exchange stated that it processed approximately $3.64 billion in net outflows during the initial nine and a half hours after reactivating customer withdrawals on Sunday.
Bitcoin advanced 1% over the preceding 24 hours to change hands at $78,491 as of 11:20 p.m. ET Sunday, while ether advanced 1.3% to reach $2,296, according to metrics from The Block’s pricing page.
Market confidence
ViaBTC chief analyst Jeff Ko informed The Block that he interprets the ETF capital exits primarily as a psychological sentiment shock.
"Spot ETF participants maintain no direct exposure to Binance, given that the underlying BTC is kept securely with regulated custodians. Furthermore, a roughly $640 million withdrawal is actually quite modest relative to the aggregate ETF assets under management," Ko explained.
Laevitas head of markets Rick Maeda expressed parallel perspectives, pointing out that Friday’s outflow remained comparatively minimal when measured against the ETFs’ combined net assets of $98.14 billion.
"Proportionately speaking, the $643 million withdrawal still represents under 1% of spot BTC ETF holdings, meaning this was simply a routine de-risking session rather than total capitulation or a collapse in institutional trust," Maeda stated.
Even so, market analysts anticipate cautious investor sentiment to persist in the near term.
"Drawing from the comparable historical precedent of Bybit’s Q1 2025 breach, I would anticipate stabilization or light outflows in the near future rather than an immediate rebound, provided the security incident remains contained at its current level," Maeda added.
Zeus Research analyst Dominick John similarly remarked that near-term demand will likely stay reserved, "with a sustained recovery in ETF capital inflows relying on improved overall market health, restored liquidity, and heightened investor conviction."
The Crypto Fear and Greed Index registered at 37 on Sunday, placing it firmly within the fear zone.
"The prevailing mood across the crypto sector currently leans toward hesitation rather than outright panic," Maeda remarked. "Markets will remain highly sensitive to news headlines as traders seek further updates surrounding the security breach alongside macroeconomic events like the U.S. midterms."
Ko also highlighted the upcoming midterm elections as another pivotal milestone.
"BTC has absorbed the security breach with notable resilience," Ko noted. "Focus is now pivoting toward the U.S. midterm elections, where shifts in congressional power could carry significant consequences for how upcoming cryptocurrency market structure regulations evolve."
Originally published at https://www.theblock.co/news/markets/2026-11-01-spot-bitcoin-etfs-largest-four-months-following-binance-hack-432270.
