US spot Bitcoin exchange-traded funds ended October with $515 million in net withdrawals, marking the first negative month for the products since June 2026. Ether ETF funds posted a record $1.61 billion in monthly outflows during the same period, erasing their year-to-date gains.
The withdrawals accelerated on Friday, November 1, following confirmation of a $6.3 billion hack at Binance, the world’s largest crypto exchange by trading volume. Bitcoin ETFs saw $643 million in outflows that day, while Ether funds experienced $156 million in withdrawals. BlackRock’s iShares Bitcoin Trust (IBIT) posted $234 million in Friday outflows, and Fidelity’s Wise Origin Bitcoin Fund (FBTC) recorded $201 million.
Bitcoin dropped to $77,000 on Thursday, October 31, ahead of the Friday sell-off. The month had shown early resilience, with four consecutive days of inflows preceding the final week’s reversal, according to data from SoSoValue and Farside Investors.
The Binance breach raised custodial concerns among fund managers and investors. Yishi, founder and CEO of OneKey, flagged vulnerability in IBIT’s structure. “IBIT could face similar security threats because it relies heavily on Coinbase to hold its Bitcoin,” Yishi said.
Ether ETF outflows in October surpassed the previous monthly record of $1.42 billion set in November 2025. The $1.61 billion outflow erased the funds’ $45 million in year-to-date net inflows for 2026, leaving Ether products in negative territory for the year.
Bitcoin ETFs retained year-to-date net inflows of $361 million through October despite the monthly withdrawal. The contrast between Bitcoin and Ether fund flows underscored divergent investor appetite for the two largest digital assets in the wake of the exchange hack.
