U.S. spot Bitcoin ETFs recorded $643.3 million in net outflows on Friday, October 30. The withdrawals, which followed the attack on Binance, marked the largest daily outflow since June 25. Spot Ethereum ETFs also saw $155.9 million in outflows that day.
According to SoSoValue data, Bitcoin funds ended the week of October 30 with total net outflows of $202.6 million. Ethereum funds recorded $431.5 million in weekly net outflows.
The figures show that selling pressure intensified across investment products tied to both assets at the end of the week. However, the daily and weekly totals reveal different patterns for Bitcoin and Ethereum funds.
Outflows accelerate across Bitcoin and Ethereum funds
Friday’s outflows from Bitcoin ETFs exceeded the entire week’s net outflows by more than three times. The difference indicates that the funds attracted approximately $440.7 million in combined net inflows over the other four trading days. Friday’s selling erased those gains and pushed the weekly balance into negative territory.
For Ethereum ETFs, weekly outflows exceeded Friday’s total. The $155.9 million withdrawn on Friday marked the largest daily outflow since October 7. The weekly total of $431.5 million shows that Ethereum funds also experienced net outflows across the other trading days combined.
The two fund groups recorded combined net outflows of $799.2 million on Friday. Their combined weekly net outflows totaled $634.1 million.
Binance attack weighs on risk appetite
The ETF outflows coincided with an attack on Binance involving approximately $6.3 billion. The FBI attributed the October 29 theft to TraderTraitor, a North Korea-linked hacking group. The agency also said the attackers had primarily converted the stolen assets into Ethereum.
Fund movements at Binance remain under scrutiny following the exchange’s reopening of withdrawals. According to a November 2 Reuters report, a company spokesperson said net outflows had reached $4.72 billion since Sunday morning. Binance said withdrawal volumes had begun to decline and stabilize after the initial surge.
Exchange withdrawals and ETF outflows reflect different types of activity. Exchange customers can move assets to other platforms or personal wallets, while ETF figures track net flows into and out of those investment products. Combining the two figures to calculate the total amount of money leaving the crypto market could therefore be misleading.
How do analysts interpret the scale of outflows?
ViaBTC Chief Analyst Jeff Ko linked the ETF outflows to a shock to investor sentiment. Ko noted that spot ETFs hold their underlying Bitcoin with regulated custodians, emphasizing that investors have no direct exposure to Binance.
Laevitas Head of Markets Rick Maeda also compared the withdrawals with the funds’ overall size. Based on the $98.14 billion in total net assets cited in the report, Friday’s Bitcoin ETF outflows represented approximately 0.66% of assets.
Maeda interpreted the scale of the withdrawals as investors reducing risk. However, the outflows’ share of total assets alone does not indicate how fund demand will develop in the coming days.
ETF demand remains in focus this week
Analysts expect investors to remain cautious in the near term. According to Zeus Research analyst Dominick John, a sustained recovery in ETF inflows will require greater market stability, improved liquidity and stronger investor confidence.
Updates on Binance’s services and the security investigation will remain among the developments markets watch this week. The U.S. midterm elections could also influence expectations for how crypto legislation progresses through Congress.
Friday’s reversal of the net inflows recorded earlier in the week highlighted Bitcoin ETF demand’s sensitivity to news developments. Data from the coming trading sessions will show whether demand strengthens again following the latest withdrawals.
