Key Takeaways
- • US spot bitcoin ETFs recorded their largest single-day outflow since June 25 on Oct. 30, totaling $643.3 million, led by BlackRock's IBIT ($233.7 million) and Fidelity's FBTC (about $201 million), according to Cryptopolitan citing Laevitas data.
- • The outflows followed a $6.3 billion hack of Binance's hot wallets on Oct. 29, described as the largest crypto theft to date, with the FBI attributing the theft to North Korea's TraderTraitor group on Oct. 31.
- • Laevitas head of markets Rick Maeda said the outflow was under 1% of spot bitcoin ETF assets and characterized it as a "de-risking day" rather than a sign of institutional capitulation.
- • Total bitcoin ETF net assets stood at $98.14 billion after the outflows, and weekly outflows for the week ended Oct. 30 reached $202.6 million.
- • Binance reopened withdrawals on Nov. 1, handling $4.65 billion in withdrawals against $1.01 billion in deposits over its first 9.5 hours, a net outflow of about $3.64 billion, or 2.1% of its $171 billion in assets under management.
Summary
US spot bitcoin ETFs recorded their largest single-day outflow since June 25 on October 30, with $643.3 million leaving the funds, according to Cryptopolitan. BlackRock's iShares Bitcoin Trust (IBIT) lost $233.7 million and Fidelity's FBTC lost about $201 million, together accounting for roughly two-thirds of the day's net withdrawals. Ark and 21Shares' ARKB relinquished $129.55 million, Grayscale's GBTC lost $53.3 million, and Bitwise's BITB lost $25.7 million. Following the outflows, the funds held $98.14 billion in net assets, and weekly outflows for the week ended October 30 totaled $202.6 million. The article notes that a late-October rebound had earlier pared the month's net outflows to about $26 million.
The withdrawals followed a $6.3 billion hack of Binance, which drained funds from the exchange's hot wallets on October 29 in what is the largest crypto theft to date. Binance said the breach may have started with a DevOps engineer's compromised laptop. Blockaid attributed the drain to signed authorizations on a single Ethereum hot wallet, Binance 14. On October 31, the FBI attributed the theft to North Korea's TraderTraitor group; on-chain investigator ZachXBT had previously pointed to North Korea's Lazarus Group. The industry locked about $3 billion on-chain, and Tether and Circle froze more than $1.567 billion in USDT and more than $800 million in USDC, respectively.
Analysts offered differing interpretations of the flows. ViaBTC chief analyst Jeff Ko described the outflow as a sentiment shock, while noting that spot ETF holders have no direct exposure to Binance because the underlying bitcoin is held by regulated custodians. Laevitas head of markets Rick Maeda said the outflow was less than 1% of spot bitcoin ETF assets and was not a sign of capitulation or loss of institutional confidence. Zeus Research analyst Dominick John said steadier markets, deeper liquidity and firmer investor confidence would be needed for a durable return of ETF inflows. The Crypto Fear and Greed Index stood at 37, in fear territory, on November 1.
Ether funds also saw $155.9 million in outflows on October 30, the largest single-day outflow since October 7, and an additional $431.5 million over the week. Ether funds' weekly figures are reported separately from bitcoin's.
Binance began restoring withdrawals on November 1, reopening 15 networks and assets in its first phase. Over the first 9.5 hours, it processed $4.65 billion in withdrawals against $1.01 billion in deposits, a net outflow of about $3.64 billion, equal to 2.1% of the exchange's $171 billion in assets under management. At the time of writing, bitcoin traded at $78,138, up 0.3% over 24 hours and down 2.5% over seven days. Maeda said markets would remain sensitive to headlines on the hack and the US midterms, and Ko said the midterms could shape how crypto market structure legislation advances through Congress.
The withdrawals followed a $6.3 billion hack of Binance, which drained funds from the exchange's hot wallets on October 29 in what is the largest crypto theft to date. Binance said the breach may have started with a DevOps engineer's compromised laptop. Blockaid attributed the drain to signed authorizations on a single Ethereum hot wallet, Binance 14. On October 31, the FBI attributed the theft to North Korea's TraderTraitor group; on-chain investigator ZachXBT had previously pointed to North Korea's Lazarus Group. The industry locked about $3 billion on-chain, and Tether and Circle froze more than $1.567 billion in USDT and more than $800 million in USDC, respectively.
Analysts offered differing interpretations of the flows. ViaBTC chief analyst Jeff Ko described the outflow as a sentiment shock, while noting that spot ETF holders have no direct exposure to Binance because the underlying bitcoin is held by regulated custodians. Laevitas head of markets Rick Maeda said the outflow was less than 1% of spot bitcoin ETF assets and was not a sign of capitulation or loss of institutional confidence. Zeus Research analyst Dominick John said steadier markets, deeper liquidity and firmer investor confidence would be needed for a durable return of ETF inflows. The Crypto Fear and Greed Index stood at 37, in fear territory, on November 1.
Ether funds also saw $155.9 million in outflows on October 30, the largest single-day outflow since October 7, and an additional $431.5 million over the week. Ether funds' weekly figures are reported separately from bitcoin's.
Binance began restoring withdrawals on November 1, reopening 15 networks and assets in its first phase. Over the first 9.5 hours, it processed $4.65 billion in withdrawals against $1.01 billion in deposits, a net outflow of about $3.64 billion, equal to 2.1% of the exchange's $171 billion in assets under management. At the time of writing, bitcoin traded at $78,138, up 0.3% over 24 hours and down 2.5% over seven days. Maeda said markets would remain sensitive to headlines on the hack and the US midterms, and Ko said the midterms could shape how crypto market structure legislation advances through Congress.
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