Cryptocurrency ETFs suffer their worst blow in months
Record outflows from ETFs
U.S. spot Bitcoin ETFs recorded net outflows of $643.3 million on Friday (their worst day in four months), while Ethereum ETFs lost $155.9 million (the highest figure since October). For the week, outflows reached $202.6 million for BTC and $431.5 million for ETH.
The trigger (The Binance hack): This plunge in institutional flows came immediately after Thursday’s historic cyberattack on Binance, in which North Korean hackers stole around $6.3 billion from the exchange’s hot wallets.
Mass withdrawals from the platform: After withdrawals resumed, Binance saw net outflows of approximately $3.64 billion during its first nine and a half hours of operation.
Panic or simple risk management?: Despite the scale of the figure, industry analysts such as Rick Maeda (Laevitas) and Jeff Ko (ViaBTC) point out that the $643 million withdrawn from ETFs represents less than 1% of these funds’ total net assets ($98.14 billion). They describe it as a “risk-off” move, rather than capitulation or a complete loss of institutional confidence.
Looking ahead and to the ballot box: Experts expect caution to prevail in the short term, as in past incidents (such as the Bybit hack). The market’s attention is now focused not only on stabilizing the crypto ecosystem after the blow, but also on the U.S. midterm elections and their potential legislative implications for the sector.
$BTC
$ETH
Record outflows from ETFs
U.S. spot Bitcoin ETFs recorded net outflows of $643.3 million on Friday (their worst day in four months), while Ethereum ETFs lost $155.9 million (the highest figure since October). For the week, outflows reached $202.6 million for BTC and $431.5 million for ETH.
The trigger (The Binance hack): This plunge in institutional flows came immediately after Thursday’s historic cyberattack on Binance, in which North Korean hackers stole around $6.3 billion from the exchange’s hot wallets.
Mass withdrawals from the platform: After withdrawals resumed, Binance saw net outflows of approximately $3.64 billion during its first nine and a half hours of operation.
Panic or simple risk management?: Despite the scale of the figure, industry analysts such as Rick Maeda (Laevitas) and Jeff Ko (ViaBTC) point out that the $643 million withdrawn from ETFs represents less than 1% of these funds’ total net assets ($98.14 billion). They describe it as a “risk-off” move, rather than capitulation or a complete loss of institutional confidence.
Looking ahead and to the ballot box: Experts expect caution to prevail in the short term, as in past incidents (such as the Bybit hack). The market’s attention is now focused not only on stabilizing the crypto ecosystem after the blow, but also on the U.S. midterm elections and their potential legislative implications for the sector.
$BTC
$ETH
