Spot bitcoin ETFs see largest daily outflows in four months following record Binance hack

What happened

U.S. spot bitcoin exchange-traded funds had $643.3 million in net outflows on Friday, their largest daily outflow in four months, after a $6.3 billion hack at Binance. Spot Ethereum ETFs saw $155.9 million in net outflows the same day.

Confirmed

Global impact / market context

Exchange-traded funds are baskets that trade like stocks, so outflows show investors pulling money out. The Binance hack appears to have scared some holders even though these funds keep their bitcoin with regulated custodians, separate from the hacked exchange.

Analyst inference

One analyst called the outflows a sentiment shock because ETF holders have no direct exposure to Binance and about $640 million is modest in context. Bitcoin rose 1% to $78,491 and ether climbed 1.3% to $2,296, suggesting selling pressure eased.

Analyst inference

What to watch

1. Binance said it recorded roughly $3.64 billion in net outflows in the first nine and a half hours after it began restoring withdrawals on Sunday, which shows how quickly customers moved funds. Confirmed
2. Watch whether bitcoin and ether ETF flows turn positive again in coming days, which would signal that the hack-driven sentiment shock has faded and money is returning. Proposed
3. Track whether the FBI's identification of North Korean hackers leads to tighter security rules for exchanges, which could raise compliance costs for crypto companies and affect their profits. Analyst inference

Affected assets

• ETH — Ethereum
• BTC — Bitcoin

Evidence

• theblock.co