Bitcoin and Ether ETFs Bleed Billions as Binance Hack Rattles U.S. Investors

Bitcoin ETFs Post the Biggest Daily Outflow Since June

U.S.-listed spot Bitcoin funds recorded net outflows of $643.3 million on Friday, October 30, the first full trading day after Binance disclosed a $6.3 billion theft. According to SoSoValue data, it was the largest one-day withdrawal since June 25, when investors pulled $696.3 million. Products from BlackRock and Fidelity accounted for the biggest share of redemptions.

The scale matters in context. Before Friday, the group of funds sat on a net inflow of just over $1 billion for 2026. A single session erased roughly 64% of that cushion, leaving the yearly tally barely positive. A negative Coinbase premium, which suggests that U.S. buyers were paying less than the global market price, added to the picture of weaker domestic demand.

Ether Funds Suffer Their Worst Month Since Launch

The pressure was even heavier on the Ethereum side. U.S. spot Ether ETFs shed $1.61 billion in October, the biggest monthly outflow since the products debuted in July 2024. The exits ended a three-month stretch of inflows, and total net assets fell from $17.60 billion to $13.22 billion as the price of ETH dropped 16.1% over the month.

The latest week was no calmer: roughly $431 million left the funds, including $155.7 million on Friday alone. Ether has since steadied near $2,270, but it still trades below key resistance levels that analysts are watching.

Why the Binance Breach Amplified the Selling

The two stories share a trigger. The hack, disclosed on October 29, raised fresh questions about custody and exchange liquidity just as risk appetite was already fading, and Bitcoin slid toward a six-week low near $76,100. Binance has since resumed withdrawals in phases, beginning with Bitcoin, and says it has restored roughly 95% of the losses. Bitcoin has recovered to around $78,000-$79,000, yet it still closed October down more than 7%.

What U.S. Investors Should Watch This Week

Several catalysts arrive between November 2 and November 6. Americans vote in the midterm elections on Tuesday, a labor-market report and major tech earnings follow, and Federal Reserve commentary could shift expectations for rates. For crypto, the key indicator will be daily ETF flows: a return to net inflows would signal that institutions are buying the dip, while another run of redemptions would suggest the cautious mood is spreading.

Bottom Line

Prices have rebounded, but fund flows tell a less comfortable story. Until U.S. demand stabilizes, traders are likely to treat rallies with caution and keep a close eye on both exchange security news and the weekly ETF scoreboard.