Bitcoin funds see $643M exit after record Binance hack

US spot Bitcoin ↘ 1.98% exchange-traded funds had $643.33 million in net outflows on Friday, Oct. 30, ending a four-day run of inflows. The selling came one day after hackers drained about $6.3 billion from Binance, the world's largest crypto exchange, according to SoSoValue data reported by BeInCrypto via Yahoo Finance. It was the funds' largest one-day withdrawal since June. Farside Investors' records show a bigger $691.7 million exit on June 25, crypto.news reported.crypto.news+1

Who led the exits

BlackRock's ↗ 0.34% iShares Bitcoin Trust ↗ 1.34% had the largest withdrawals, losing $233.7 million, according to Farside data. The Fidelity Wise Origin Bitcoin Fund ↗ 1.30% lost $201 million and the ARK 21Shares Bitcoin ETF ↗ 1.27% lost $129.5 million. The Grayscale Bitcoin Trust ↗ 1.30% and the Bitwise Bitcoin ETF ↗ 1.33% also had outflows, and no Bitcoin fund took in new money that day, crypto.news reported.crypto.news

Friday's selling more than erased the $440.8 million the funds had gathered from Oct. 26 to Oct. 29, so the week ended with a net outflow of $202.4 million. By Farside's figures, October as a whole ended with $515.9 million in Bitcoin ETF outflows. Ethereum ↘ 2.21% funds lost another $155.7 million on Friday, led by the iShares Ethereum Trust ↗ 1.23%. That brought their October withdrawals to about $1.61 billion, according to the same report. Even after the outflows, the Bitcoin funds still held $98.14 billion in assets, so Friday's exit came to about 0.7% of the total, BeInCrypto noted.finance.yahoo.com+1

The record breach

Binance said the total impact of the attack was about $6.3 billion. It blamed a "complex attack" that it first traced to a compromised engineer's laptop, and it later said investigators had "uncovered additional points of breach," AFP reported. TRM Labs linked the theft "with high confidence" to TraderTraitor, a North Korean hacking unit. The firm said about $6.36 billion was moved off 10 blockchains, most of it within about 20 minutes, CBS News reported. That is roughly four times the $1.5 billion taken from Bybit in February 2025, which had been the record.afp.com+1

About $3 billion of the stolen assets has been frozen, with help from Tether and Circle ↗ 3.29%, which froze funds tied to the attack, according to AP. Binance has pledged to cover all losses from its user protection fund and company money. It also said it plans to resume withdrawals in phases once security checks are done, Forbes reported.forbes.com+1

Market fallout

After the breach, Bitcoin fell to a six-week low on Friday morning, and more than $1.6 billion in leveraged positions were liquidated, according to Benzinga via Yahoo Finance. The token is trading below Glassnode's estimate of $81,500 as the average price US spot ETFs paid for their Bitcoin, crypto.news reported.finance.yahoo.com+1

The last record hack was followed by heavier selling. A week after the Bybit theft, investors pulled a then-record $1 billion from the funds in a single day, BeInCrypto noted. Trading in the coming sessions should show whether this exit stays a one-day event or turns into a longer retreat.finance.yahoo.com