Investors Pull $643 Million From Bitcoin ETFs After the Biggest Crypto Hack in History

What happened

Investors pulled $643 million from US spot Bitcoin ETFs on October 30, one day after hackers drained about $6.3 billion from Binance, the largest crypto exchange. The withdrawal ended a four-day run of inflows for funds holding $98.14 billion in assets.

Confirmed

Global impact / market context

When investors cash out of these funds, trading firms return fund shares for Bitcoin or cash, so the funds give up coins that can be sold on the open market. That selling can push Bitcoin prices lower, hurting remaining holders.

Analyst inference

Ethereum funds also lost $156 million, their fifth straight day of outflows. The Binance theft, linked to a North Korean hacking unit, froze about $2.7 billion of stolen assets. These events together likely made crypto investors more cautious about holding risky assets.

Analyst inference

What to watch

1. Binance suspended deposits and withdrawals after the hack and said user funds are safe. Watch whether it resumes normal service, which would signal the exchange has contained the damage. Confirmed
2. Track whether token issuers and network operators freeze more of the roughly $6.36 billion stolen, beyond the $2.7 billion already frozen, since recovered assets could reduce losses. Proposed
3. Watch whether Bitcoin ETF outflows continue past one day. Sustained redemptions would force funds to release more coins for sale, adding selling pressure on Bitcoin prices. Analyst inference

Affected assets

• ETH — Ethereum
• BTC — Bitcoin

Evidence

• beincrypto.com