The Binance hack darkens a week that had otherwise started well for Bitcoin ETFs. After four consecutive days of inflows, these funds experienced $643.33 million in outflows on Friday. Just o
The Binance hack darkens a week that had otherwise started well for Bitcoin ETFs. After four consecutive days of inflows, these funds experienced $643.33 million in outflows on Friday. Just one session was enough to erase the week’s gains and push their assets under management back below $100 billion.
The week had otherwise started well for Bitcoin ETFs. Between Monday and Thursday, these products attracted $440.73 million in fresh capital. The market seemed to regain some stability, with Bitcoin trying to hold around $80,000. This dynamic contrasted with the previous month, since the 30-day cumulative balance had already returned to negative territory.
But on Friday, the mood suddenly changed. In a single session, investors withdrew $643.33 million. As a result, the inflows accumulated over four days did not withstand this wave of outflows. The week thus ends with a negative balance of about $202.6 million.
At the same time, trading volumes surged to $6.35 billion, nearly three times their Thursday level. As for the net assets of the funds, they fell back to $98.14 billion. The symbolic $100 billion mark therefore did not hold up during the session.
The Binance hack, which occurred during the night of October 29 to 30, takes place in this context of nervousness. It may have contributed to the renewed risk aversion, while institutional flows were just starting to regain momentum.
Figures show that outflows were not evenly spread among different issuers. Five funds alone account for all the outflows recorded on Friday.
BlackRock leads with $233.70 million in outflows from its IBIT ETF. Fidelity closely follows with $201.04 million withdrawn from its FBTC fund.
Behind them, ARK and 21Shares record $129.55 million in outflows from ARKB. Grayscale loses $53.32 million on GBTC, while Bitwise sees $25.72 million leave BITB.
The sum of these five amounts reaches exactly $643.33 million. In other words, the outflows concentrate on a limited number of products. BlackRock and Fidelity even represent 67.6% of the total, while the top three funds hold 87.7%.
This concentration deserves attention: investors mainly reduced their exposure on the two largest ETFs in the market. Large funds were therefore not spared, despite their weight in the ecosystem.
The movement does not concern Bitcoin alone. Ether ETFs also lost $155.85 million, while Solana funds recorded $10.74 million in outflows. This generalized trend suggests more a move towards caution across the crypto market than a simple disengagement from Bitcoin.
However, the amounts deserve to be put into perspective. The $643.33 million withdrawn represent about 0.66% of the $98.14 billion in assets under management. The sum is impressive, but it does not yet indicate a massive investor flight.
Besides, the market has already experienced comparable episodes. At the end of October, Bitcoin ETFs recorded $774 million in outflows before recovering $110 million in a single session. Confidence therefore returned quite quickly.
The next session will therefore be decisive. If inflows resume on Monday, this bad day could remain just a hiccup. On the other hand, a second week of outflows would raise more questions about institutional investor confidence. Even when they do not go directly through Binance, major players are not spared the ecosystem’s shocks.
