U.S. Bitcoin Funds See $1 Billion in Outflows Over Friday and Monday Sessions
Key Facts
U.S. spot bitcoin funds recorded net outflows of $1.04 billion over Friday and Monday’s sessions, according to data compiled by Bloomberg, in a wave that included BlackRock’s iShares Bitcoin Trust, which alone saw $405 million withdrawn on Monday. The flows came after the funds recorded a large daily outflow at the end of the week, coinciding with the disclosure of a breach at Binance. In Friday’s session, October 30, bitcoin funds saw outflows of $643.3 million, their largest daily net outflow since June 25, according to The Block. These figures place the funds’ moves over two days in the context of a prominent security breach, but do not establish that the breach was the sole cause of the withdrawals. Separate data also showed that U.S. spot ether funds recorded net outflows of $155.9 million on Friday, their largest since October 7.
Binance said its hot wallets were breached at about 20:05 UTC on October 29, resulting in the loss of tokenized assets valued at about $6.3 billion. In its statement, the company said it had temporarily suspended deposits and withdrawals to conduct security checks, frozen funds and cooperated with law enforcement. In an official update published on November 3, it said about 98% of the affected tokenized assets had been made available again by October 31, and that the investigation was ongoing. A ViaBTC analyst said outflows from spot exchange-traded funds appeared closer to a “sentiment shock,” noting that fund holders were not directly exposed to Binance because the underlying assets were held by regulated custodians. Reuters offered a similar assessment of the broader impact, reporting that analysts and experts said the fallout appeared limited at that point, with few signs of spillover into broader financial markets despite deepening links between cryptocurrencies and traditional finance.
Bitcoin’s price moved erratically around these developments, falling 3.2% on the evening of Thursday, October 29, to below $79,000 after the initial news of the breach, according to the Associated Press. After hitting a six-week low on Friday, the price recovered over the weekend to trade above $77,000 on Monday, according to Reuters. The trajectory indicates that the price recovery coincided with large fund outflows over the two sessions, highlighting the divergence between price action and net flows over the same period. Binance said customer inflows to the platform totaled $2.7 billion from Sunday through November 2, and that withdrawal volumes had stabilized after an initial increase. Reuters also covered the FBI’s attribution of the attack to North Korea’s TraderTraitor group; researchers said the group’s activities help fund the country’s weapons programs.
In U.S. labor market data released on November 3, a Bureau of Labor Statistics report showed job openings totaled 7.523 million in September, compared with 7.190 million in August after revision. Hires totaled 5.402 million in September, versus 5.271 million in the previous month. Quits rose to 3.4 million, while layoffs and discharges stood at 1.6 million and changed little, according to the report. The October JOLTS report is scheduled for release on December 1, 2026, at 10:00 a.m. Eastern time.