US spot bitcoin exchange-traded funds, which hold bitcoin directly, recorded $643.3 million in net outflows on Friday, their largest single-day outflow since June 25, according to SoSoValue data. Net flow figures subtract inflows from outflows, so the reading reflects money that left the funds overall. The withdrawals came one day after attackers drained about $6.3 billion from crypto exchange Binance’s hot wallets — the internet-connected wallets exchanges use to process day-to-day customer withdrawals.

For the week ending Oct. 30, spot bitcoin ETFs recorded total outflows of $202.6 million. Spot Ethereum ETFs also experienced significant withdrawals, losing $155.9 million on Friday, their largest daily outflow since Oct. 7. Weekly outflows from the ether funds reached $431.5 million.

Binance Hack Draws Market Attention

The FBI has linked the Binance attackers to North Korean hackers. Binance began restoring withdrawals in phases at 06:00 UTC on November 1, 2026. By 12:36 UTC, withdrawals had resumed for all 15 networks and assets included in the initial phase.

The exchange said it recorded roughly $3.64 billion in net outflows during the first nine and a half hours after withdrawals reopened.

Binance said in a post on X:

Binance began restoring withdrawals in phases at 06:00 UTC on November 1, 2026. By 12:36 UTC, withdrawals had resumed for all 15 networks and assets in the initial phase. After an initial spike, withdrawal volumes have declined and are stabilising as expected, while deposit…

— Binance (@binance) November 1, 2026

https://x.com/binance/status/2116926305254133892?ref_src=twsrc%5Etfw

Jeff Ko, chief analyst at ViaBTC, described the ETF withdrawals as a “sentiment shock.” He said spot ETF holders have no direct exposure to Binance because the bitcoin backing the funds is held with regulated custodians.

“In context, a roughly $640 million outflow is actually modest against the total ETF assets,” Ko said.

Rick Maeda, head of markets at Laevitas, also said the outflow was limited relative to the size of the funds. He noted that spot bitcoin ETFs held total net assets of $98.14 billion.

“In scale, the $643 million outflow is still under 1% of spot [bitcoin] ETF assets so this was simply a de-risking day, and not capitulation or a loss in institutional confidence,” Maeda said.

Analysts Expect Caution in the Near Term

Analysts said investors are likely to remain cautious in the near term. Maeda pointed to the Bybit hack in the first quarter of 2025 — one of the largest security breaches in crypto history — as a comparable event. He said he expected “stabilization or modest outflows in the near term rather than a snap-back as long as the hack can be contained at its current situation.”

Dominick John, an analyst at Zeus Research, likewise expects demand to remain cautious. He said a sustained recovery in ETF inflows would depend on “improved market stability, restored liquidity and stronger investor confidence.”

Maeda said the mood in crypto “seems to be one of caution rather than fear.” He added that market reactions would depend on updates about the hack and scheduled events, including the US midterm elections.

Ko also identified the midterms as a key event, saying the balance of power in Congress could affect the progress of crypto market structure legislation.

“[Bitcoin] has absorbed the hack quite resiliently,” Ko said.

The Crypto Fear and Greed Index stood at 37 on Sunday, placing it in the index’s fear range. The index runs from 0 to 100, with higher readings indicating greater greed and lower readings greater fear.

Bitcoin was up 1% over 24 hours at $78,491 as of 11:20 p.m. ET Sunday. Ether had risen 1.3% to $2,296, according to The Block’s price data.

Source: Blockonomi