U.S. spot Bitcoin ETFs recorded substantial net outflows in the sessions surrounding the Binance security incident, with redemptions totaling roughly $399 million on November 2 and $643 million on October 30—the largest single-day withdrawal since June in several datasets. The moves erased a prior multi-day inflow streak and highlighted institutional sensitivity to exchange counterparty risk even as Bitcoin’s spot price held relatively firm.

On November 2, the funds posted a net outflow of $398.6 million, driven almost entirely by BlackRock’s iShares Bitcoin Trust (IBIT), which alone saw $405.3 million in redemptions. Fidelity’s FBTC recorded a modest $6.7 million inflow that partially offset the total. The November 2 figure followed Friday’s $643.3 million outflow, itself the heaviest single session since June. Together the two days accounted for the bulk of recent redemptions.

Weekly and recent flow picture
The five trading days through November 2 produced a net outflow of approximately $712 million. The prior full week (October 26–30) closed with roughly $202–203 million in net outflows, reversing earlier strength. October as a whole finished with about $515 million in net outflows after a mixed month that included both sizable inflows and heavy redemption days. Cumulative net inflows since the January 2024 launch remain near $56.6 billion, while total net assets across the U.S. spot Bitcoin ETFs stand around $98.1 billion.

Ethereum spot ETFs also faced consecutive outflow days, with reports of roughly $140 million in redemptions on November 2 and larger weekly losses in the preceding period. The dual pressure on Bitcoin and Ethereum products coincided with broader risk-off positioning after the October 29 Binance incident, in which an estimated $6.3–$6.4 billion left the exchange’s hot wallets.

Context and market reaction
The redemptions occurred as Bitcoin traded in the mid-to-high $76,000s to low $78,000s, recovering from brief tests lower after the hack disclosure. Bitcoin dominance stayed elevated near 59–60%, and some corporate treasury buyers continued to add exposure even as ETF flows turned negative. Analysts noted that the outflows reflected caution around exchange infrastructure and elevated interest-rate uncertainty rather than a broad rejection of digital assets. Trading volume in the ETF complex moderated after the large October 30 session.

Market participants are now watching whether the outflow streak persists into midweek sessions, any further operational updates from Binance on phased withdrawal restoration, and the results of the U.S. midterm elections. While the absolute dollar amounts remain large, the percentage of total ETF assets involved has been modest relative to the scale of the Binance event, and cumulative inflows since launch continue to dwarf the recent weekly reversals.