The Binance hack darkens a week that had started well for Bitcoin ETFs. After four days of consecutive inflows, these funds suffered $643.33 million in withdrawals on Friday. A single session was therefore enough to erase the week’s gains and bring their assets under management back below $100 billion.
In brief
- Bitcoin spot ETFs suffered $643.33 million in net outflows on Friday, following four days of inflows totaling $440.73 million.
- For the week as a whole, the balance sheet was negative at $202.6 million. Assets under management also fall below 100 billion.
- Five funds concentrate the outflows, including BlackRock and Fidelity, which alone total $434.74 million.
Bitcoin ETF, four days of increase erased in one session
The week had started well for Bitcoin ETFs. Between Monday and Thursday, these products had attracted $440.73 million in fresh capital. The market seemed to find some stability, with bitcoin trying to stay around $80,000. This dynamic contrasted with that of the previous month, since the cumulative balance over 30 days had already returned to negative territory.
But on Friday, the atmosphere suddenly changed. In a single session, investors withdrew $643.33 million. Result: the entries accumulated over four days did not resist this wave of withdrawals. The week thus ends with a negative balance of approximately $202.6 million.
At the same time, trading volumes jumped to $6.35 billion, almost three times their level on Thursday. As for the net assets of the funds, they fell to $98.14 billion. The symbolic bar of 100 billion will therefore not have resisted the session.
The Binance hack, which occurred on the night of October 29 to 30, occurs in this context of nervousness. It may have contributed to the renewed risk aversion, while institutional flows were just beginning to regain color.
BlackRock and Fidelity account for two thirds of withdrawals
The figures show that the outputs were not distributed evenly between the different transmitters. Five funds alone accounted for all of the withdrawals recorded on Friday.
BlackRock comes out on top with $233.70 million in outflows on its IBIT ETF. Fidelity follows closely with $201.04 million withdrawn from its FBTC funds.
Behind them, ARK and 21Shares record $129.55 million in outflows on ARKB. Grayscale loses 53.32 million on GBTC, while Bitwise sees 25.72 million leaving BITB.
The addition of these five amounts reaches exactly $643.33 million. In other words, the withdrawals are concentrated on a limited number of products. BlackRock and Fidelity even represent 67.6% of the total, while the first three funds account for 87.7%.
This concentration deserves attention: investors have mainly reduced their exposure to the two largest ETFs on the market. The deep seas have therefore not been spared, despite their weight in the ecosystem.
Is the Binance hack enough to explain this wave of withdrawals?
The movement is not just about bitcoin. Ether ETFs also lost $155.85 million, while Solana funds saw $10.74 million in outflows. This widespread trend suggests more of a movement of caution across the entire crypto market than a simple withdrawal from bitcoin.
However, the amounts deserve to be put into perspective. The $643.33 million withdrawn represents approximately 0.66% of the $98.14 billion in assets under management. The sum is impressive, but it does not yet reflect a massive flight of investors.
Moreover, the market has already experienced comparable episodes. By the end of October, Bitcoin ETFs had 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 entries resume on Monday, this bad day could remain a simple accident. On the other hand, a second week of withdrawals would raise more questions about the confidence of institutional investors. Even when they do not go directly through Binance, the big players do not escape the upheavals of the ecosystem.
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