Bitcoin exchange-traded funds experienced significant outflows on Friday, with net withdrawals of $643.33 million reversing four consecutive days of investor inflows. The pullback coincided with the market's response to a $6.3 billion security breach at cryptocurrency exchange Binance.
BlackRock's iShares Bitcoin Trust (IBIT) led the withdrawals with $233.70 million in redemptions, followed by Fidelity's FBTC with $201.04 million. ARK 21Shares' ARKB recorded $129.55 million in net outflows, while Grayscale's GBTC and Bitwise's BITB lost $53.32 million and $25.72 million respectively.
Friday's outflows erased $440.73 million in net inflows recorded from Monday through Thursday, leaving the five-day period with total net outflows of approximately $202.6 million. Bitcoin ETF trading volume surged to $6.35 billion on Friday, compared with $2.11 billion the previous day, while total net assets in Bitcoin funds fell to $98.14 billion.
The broad market retreat extended beyond Bitcoin products. US spot Ether ETFs recorded $155.85 million in outflows on Friday, marking their fifth consecutive session of net withdrawals. Solana ETFs posted $10.74 million in outflows, while XRP products also experienced net redemptions.
Binance disclosed that the breach affected approximately $6.3 billion in cryptocurrency held in its hot wallets. The exchange said it has replenished roughly 90% of the affected assets using company funds and pledged to cover all losses for customers. Binance plans to resume withdrawals in phases on November 1 following security checks.
Bitcoin traded near $77,600 on Saturday after falling below $77,000 during Friday's selloff. The cryptocurrency remained below the $81,000 to $82,000 resistance area that had been identified before the decline, with traders monitoring support levels around $76,000.
