US Bitcoin ETFs record 643 million dollar outflow after Binance hack

Investors withdrew 643 million dollars from United States spot Bitcoin exchange-traded funds on Friday, according to reports from CoinDesk and Cointelegraph. The massive redemptions snapped four straight days of inflows and resulted in 515 million dollars in total net monthly outflows for October, Cointelegraph reported, citing data from SoSoValue. It marked the first negative monthly performance for the funds since June. [1][2][3]

The market instability was triggered by a 6.3 billion dollar security hack at Binance, Cointelegraph reported. Following the exploit, Binance transferred 7,499 Bitcoin out of its SAFU wallet, leaving approximately 7,500 Bitcoin in the fund with no clear timeline to restore its 1 billion dollar balance, according to Cointelegraph. Ether exchange-traded funds were also hit hard, posting a record monthly outflow of 1.61 billion dollars in October. [2][3][6][7]

Exchange-traded funds are investment products traded on stock exchanges that hold underlying assets such as cryptocurrencies. Binance, founded in 2017 by Changpeng Zhao, operates as the largest cryptocurrency exchange by daily trading volume. As FTMQ Crypto reported earlier, the Binance exploit and a technology stock decline previously drove total cryptocurrency market liquidations above 1.5 billion dollars. [13][14][16]

Despite the severe end-of-month exit, US spot Bitcoin funds have accumulated approximately 361 million dollars in net inflows for the full year, Cointelegraph reported. Broader traditional markets also experienced volatility, with the Nasdaq index shifting from a 1 percent gain to a 1 percent decline on Monday, according to CoinDesk Tech Security. [2][3][4]