Bitcoin ETFs post biggest daily outflow in four months after Binance hack

what happened

U.S. spot bitcoin ETFs recorded net outflows of $643.3 million on Friday, the heaviest single-day withdrawal since June 25, according to SoSoValue data cited by The Block. The move followed Thursday's theft of about $6.3 billion from Binance hot wallets, which the FBI has linked to North Korean hackers. Spot ether ETFs also shed $155.9 million on Friday, their biggest since October 7, and weekly outflows reached $202.6 million for bitcoin funds and $431.5 million for ether funds.

Binance said it saw roughly $3.64 billion in net withdrawals within about nine and a half hours of resuming withdrawals on Sunday. Bitcoin edged up 1% over 24 hours to $78,491, while ether rose 1.3% to $2,296.

why it matters

Analysts at ViaBTC and Laevitas view the selling as a sentiment shock rather than a loss of institutional confidence, since the $643 million equals less than 1% of total ETF assets of $98.14 billion. Zeus Research expects demand to stay cautious until market stability and liquidity return. The Crypto Fear and Greed Index read 37 on Sunday, deep in fear territory. Attention is now turning to the US midterm elections.

market impact

Bitcoin and ether: ETF outflows cut institutional demand, adding pressure on prices

• ▼Bitcoin pressure down — outflows from spot ETFs reduce institutional demand
• ▼Ether pressure down — outflows from ether ETFs weaken demand for ETH

tags

instruments