Bitcoin ETFs Record $409.5 Million in Outflows After Binance Hot-Wallet Breach
U.S. spot Bitcoin exchange-traded funds (ETFs) recorded $409.5 million in net outflows on October 30, ending a four-day streak of inflows as investors reacted to the Binance hot-wallet breach, according to data from Farside Investors. Withdrawals were concentrated in Fidelity's FBTC and Ark Invest's ARKB, while BlackRock's IBIT had not yet reported its figures for the session.
The outflows marked the first full U.S. trading session following the breach and reversed $440.8 million in inflows recorded between October 26 and October 29. However, the available figures do not yet establish a broad institutional retreat from Bitcoin, particularly because IBIT, which accounted for most of the preceding inflows, remained unreported.
Fidelity and Ark Lead Bitcoin ETF Outflows
Farside Investors' October 30 figures showed that Fidelity's FBTC experienced $201.0 million in net outflows, while Ark Invest's ARKB lost $129.5 million. Grayscale's GBTC recorded $53.3 million in outflows, and Bitwise's BITB saw $25.7 million leave the fund.
Combined, FBTC and ARKB accounted for $330.5 million, or approximately 81% of the reported daily outflows. Other issuers, including Invesco, Valkyrie and VanEck, reported zero flows for the session.
BlackRock's IBIT remained a key missing figure. The fund attracted $410.6 million over the four sessions leading up to October 30, representing about 93% of the $440.8 million total inflow during that period. Its unreported October 30 figure means the daily outflow total remains provisional and could change once the data becomes available.
Farside's cumulative figures put net inflows into U.S. spot Bitcoin ETFs at approximately $57.3 billion since launch. Against that total, the reported $409.5 million withdrawal represents roughly 0.7% of cumulative net inflows.
Bitcoin ETF Inflows Reverse After Four Sessions
The four-day inflow streak built gradually before the breach. U.S. spot Bitcoin ETFs attracted $110.3 million on October 26, followed by $176.0 million on October 27, $137.3 million on October 28 and $17.2 million on October 29.
The decline in daily inflows on October 29 suggested that buying momentum had already cooled before the breach occurred after U.S. markets closed that evening. The subsequent $409.5 million outflow reversed much of the recent improvement in fund flows.
Earlier in October, however, the ETFs experienced a larger single-day withdrawal. On October 22, the funds lost $635.6 million, followed by another $137.9 million in outflows on October 23. The combined two-day withdrawal reached $773.5 million.
The four sessions of inflows before the Binance incident recovered approximately 57% of that earlier two-day loss. The October 30 outflow was also smaller than the October 22 withdrawal, although the missing IBIT figure leaves the final comparison uncertain.
Bitcoin Price Remains Near $77,000
Bitcoin's market price showed limited movement following the ETF outflows. BTC traded near $77,382 at approximately 03:25 UTC on October 31, down less than 0.1% over 24 hours, according to the source material.
The cryptocurrency remained just above a six-week low reached when Binance halted withdrawals on October 29. So far, the reversal in ETF flows has not coincided with another significant decline in Bitcoin's spot price.
The scale of the reported fund withdrawals was also smaller than the value attributed to the Binance theft. Blockchain tracing firms estimated that the attacker took 18,270 BTC, worth approximately $1.47 billion at the time. The reported $409.5 million in Bitcoin ETF outflows was equivalent to roughly 28% of that amount.
Ether investment products also experienced outflows, extending a series of weekly redemptions that had already made October the heaviest month for Ether ETF outflows in more than a year, according to the source material.
Why the ETF Outflows Do Not Yet Confirm a Broad Exit
The available data confirms that investors withdrew money from U.S. spot Bitcoin ETFs during the first full trading session after the Binance breach. It does not, by itself, demonstrate a widespread institutional departure from Bitcoin.
The distinction matters because the largest fund by assets, BlackRock's IBIT, had not reported its daily flow. Meanwhile, most of the disclosed outflows came from two products, and the reported total remained below October's largest daily withdrawal.
Nevertheless, the reversal was substantial in absolute terms. The change from $440.8 million in inflows over four sessions to $409.5 million in outflows on a single day represented a swing of approximately $850 million. The incident also unfolded against the backdrop of a reported $6.3 billion removal from Binance's hot wallets, raising the possibility that investors could reassess exchange custody risks.
If BlackRock later reports a large outflow, the final October 30 total could rise significantly and weaken the interpretation that investors made only a limited adjustment. The available figures do not yet resolve that possibility.
What to Watch After the Binance Breach
Three developments could help clarify the market's response. The first is IBIT's final October 30 flow figure, which will determine whether the reported outflow remains near $409.5 million or increases materially.
The second is the October 31 ETF session. Continued withdrawals would provide further evidence that the selling extended beyond a single trading day, while a return to inflows could indicate that the initial reaction was temporary.
Bitcoin's price action is another important indicator. Whether BTC can remain above the $77,000 area as additional ETF data becomes available may offer further context on how investors are assessing the breach. Until those figures emerge, one session of concentrated outflows is insufficient to establish a sustained change in institutional sentiment.
source: blockchainreporter
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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