US Spot Bitcoin ETFs Bleed $643M Following Record $6.4B Binance Breach

Institutional investors moved rapidly to trim digital asset exposure on Friday, triggering $643.2 million in net redemptions from US spot Bitcoin exchange-traded funds ¹. The retreat marked the largest single-day outflow of October for the products and followed a massive security breach on Thursday, in which attackers extracted approximately $6.4 billion from crypto exchange Binance ¹.

The wave of selling immediately halted a prior four-day inflow streak that had generated $441 million, leaving the funds down around $202 million across the week and roughly $516 million for the entire month of October ¹. Cumulative net inflows across the asset class settled at $57.4 billion, while aggregate net assets under management stood at $103.2 billion ¹. The sudden institutional reversal arrived after previous periods where US spot Bitcoin and Ether ETFs shed hundreds of millions in weekly volumes ¹.

Altcoin Funds Extend Drawdowns

Products offering exposure to alternative layer-1 networks experienced comparable selling pressure relative to their asset bases ¹. Spot Ethereum funds surrendered $155.7 million on Friday, extending an outflow run to five consecutive sessions that reached approximately $431 million and pushed aggregate monthly net redemptions to nearly $1.61 billion ¹. Concurrently, spot Solana funds recorded outflows of $10.8 million, their fifth straight down day, culminating in a weekly drawdown of around $72 million after capturing net inflows on merely two sessions throughout October ¹.

Broader spot trading desks absorbed immediate liquidation shocks before establishing footing ¹. While $BTC fell roughly 4% on Friday alongside more than $1.3 billion in leveraged market liquidations, it recovered toward $77,520 on Saturday ¹. At the time of writing, Bitcoin traded near $77,878 as broader market sentiment hovered in fear territory. Binance announced commitments to compensate affected balances via balance-sheet capital and internal safety reserves, aided by stablecoin issuers Tether and Circle freezing over $2.3 billion in compromised funds ¹. Simultaneously, macroeconomic pressures compounded risk aversion after the Federal Reserve held interest rates between 3.75% and 4% on Wednesday, with two policymakers dissenting in favor of an immediate rate hike ¹.