U.S. Bitcoin ETFs Shed Over $1 Billion in Three Trading Sessions After Binance Hack
Key Takeaways
- •U.S. spot Bitcoin ETFs shed a combined $1.16 billion over three straight sessions, with daily outflows of $643 million on Friday, $399 million on Monday, and $116 million on Tuesday.
- •The pace of withdrawals slowed each session, meaning more than half of the three-day total left the funds on the first day of the stretch.
- •André Dragosch, Head of Research at Bitwise, characterized the outflows as short-term risk aversion rather than a structural change in institutional sentiment, stating that institutional ETF holdings remained largely intact.
- •The withdrawal streak occurred after a hack at Binance, one of the world's largest cryptocurrency exchanges by trading volume.
- •Bitcoin traded near $78,000 during the outflow period, and the Crypto Fear & Greed Index climbed to 34 from 26 while staying within the Fear band below the neutral threshold of 45.
U.S. spot Bitcoin ETFs recorded $1.16 billion in net outflows across three consecutive trading sessions as weakening market sentiment prompted investors to reduce their exposure to the cryptocurrency, according to data from SoSoValue, a platform that tracks daily flows for U.S.-listed crypto funds.
Day-by-Day Outflows
The funds shed $643 million on Friday, $399 million on Monday, and $116 million on Tuesday. The daily totals stepped down each session, meaning more than half of the three-day total left the funds on the first day of the stretch, with the pace of withdrawals slowing as the sessions progressed.
Bitwise Research Chief: Short-Term Risk Aversion
André Dragosch, Head of Research at Bitwise, a U.S.-based digital asset manager and issuer of a spot Bitcoin ETF, attributed the withdrawals to short-term risk aversion rather than a structural shift in institutional sentiment.
Dragosch also said institutional ETF holdings remained largely intact, drawing a distinction between the risks associated with exchange hot wallets — internet-connected wallets used to facilitate trading — and institutional cold-storage arrangements, in which assets are kept offline.
Market Backdrop
Bitcoin traded near $78,000 during the outflow stretch, while the Crypto Fear & Greed Index — a sentiment gauge maintained by Alternative.me that runs from 0 (Extreme Fear) to 100 (Extreme Greed) — rose to 34 from 26, remaining within the “Fear” band that covers readings from 25 to 44 and well short of the “Neutral” range that begins at 45.
The selling streak followed a hack at Binance, one of the world’s largest cryptocurrency exchanges by trading volume.
In an X post published on November 4, 2026, BitKE (@BitcoinKE) highlighted the prevailing mood:
Current state of crypto is ‘Fear’ #BinanceHack #GreedFearIndex #CryptoFear
— BitKE (@BitcoinKE) November 4, 2026
https://x.com/BitcoinKE/status/2117963459090682315?ref_src=twsrc%5Etfw
Background
Spot Bitcoin ETFs hold bitcoin directly and were authorized by the U.S. Securities and Exchange Commission in January 2024, opening a regulated channel through which institutional and retail investors can gain exposure to the asset. Daily flow figures published by trackers such as SoSoValue are widely followed by market participants as a measure of institutional demand, which makes the coming sessions’ prints a running check on whether the withdrawal streak Dragosch characterized as short-term extends or fades. Major issuers include BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s FBTC, Grayscale’s GBTC, and Bitwise’s BITB.
Source: BitcoinKE
