Investors withdrew $643.33 million from U.S. spot Bitcoin ETFs on October 30, according to SoSoValue data, snapping a four-day streak of positive net inflows. The sudden capital exit occurred just one day after a massive cyberattack drained approximately $6.3 billion from Binance, the world's largest cryptocurrency exchange.
- $643.33 million was pulled from spot Bitcoin ETFs on October 30, equaling roughly 0.7% of the $98.14 billion total assets held across the funds.
- BlackRock’s iShares Bitcoin Trust (IBIT) recorded the highest redemptions at $234 million, followed by exits from funds managed by Fidelity and Ark Invest.
- Spot Ethereum (ETH) ETFs shed $156 million on the same day, marking their fifth consecutive day of net outflows.
- Analytics firm TRM attributed the $6.36 billion theft to North Korean hacking group TraderTraitor, noting that operators and token issuers have frozen $2.7 billion in stolen assets.
Major Fund Outflows Follow Record Security Breach
The $643.33 million single-day outflow ended a four-day accumulation period that began on October 26. BlackRock's IBIT experienced the sharpest decline with $234 million in redemptions, while Fidelity and Ark Invest also registered substantial capital exits. The parent funds hold $98.14 billion in combined assets, meaning Friday's redemptions accounted for roughly 0.7% of total holdings.
The widespread selling followed an unprecedented attack on October 29, when hackers moved roughly $6.36 billion from Binance wallets across 10 blockchains in approximately 20 minutes. Blockchain intelligence firm TRM linked the attack to the North Korean state-backed unit TraderTraitor. The theft is over four times larger than the $1.5 billion exploit of Bybit in February 2025, making it the largest in crypto history. While Binance suspended deposits and withdrawals, token issuers and network operators managed to freeze $2.7 billion of the stolen funds.
Bitcoin Price Pressures and Historical Trends
Spot Ethereum funds added to the institutional market retreat, losing $156 million on October 30 in their fifth straight day of negative flows. The market stress coincided with the date approximately $11 billion in options contracts expired. Bitcoin (BTC) traded at $77,189, down 1.7% over 24 hours and 7.3% lower for the month of October 2026.
This monthly drop follows a 3.95% decline in October 2025. Back-to-back negative Octobers have only occurred once before in Bitcoin's history, during 2011 and 2012, sharply contrasting with the asset's historical average October gain of 26%. The $643.33 million withdrawal mirrors an outflow of $635 million recorded on October 22, though past major security events have triggered deeper pullbacks. Following the February 2025 Bybit hack, single-day ETF outflows reached a record $1 billion, with total weekly exits approaching $3 billion after the exploit drained roughly $6.3 billion from Binance.
Why It Matters
Institutional ETF investors are exhibiting immediate risk-off behavior in response to major exchange security incidents, even though ETF assets are held in segregated custody structures independent of Binance. The upcoming trading sessions will clarify whether this capital exit represents a short-lived reaction similar to the October 22 dip or the start of a protracted redemption cycle like the one observed after the Bybit incident. Market participants should track ETF flow data closely, as ongoing redemptions force market makers to sell underlying Bitcoin on spot markets, creating continuous overhead price pressure.
