October Sees Bitcoin ETF Outflows of $643M Following Major Binance Security Breach
October closed with US spot Bitcoin ETFs recording $515 million in net outflows, as Ethereum-based funds experienced an unprecedented $1.61 billion in monthly withdrawals.
A massive $643 million exodus from US-traded spot Bitcoin exchange-traded funds (ETFs) occurred on Friday, resulting in October finishing with negative net flows as cryptocurrency markets experienced turbulence in the wake of a $6.3 billion security breach at Binance.
The significant withdrawals on Friday broke a streak of four straight days featuring positive inflows, ultimately resulting in the funds recording $515 million in net outflows for the month of October, marking their first month in the red since June, based on data from SoSoValue. Despite October's setback, the funds have managed to accumulate approximately $361 million in net inflows for the year ending in October.
Data from Farside Investors reveals that BlackRock's iShares Bitcoin Trust (IBIT) experienced the largest outflows on Friday, totaling $234 million, with Fidelity's Wise Origin Bitcoin Fund (FBTC) coming in second at $201 million in withdrawals.
The mass withdrawals came on the heels of Bitcoin's price decline to $77,000 on Thursday. On Friday, Binance, which holds the position as the world's largest crypto exchange by trading volume, acknowledged that hackers had successfully stolen approximately $6.3 billion in crypto assets.
On Friday, Yishi, the founder and CEO of hardware wallet manufacturer OneKey, issued a warning on X that IBIT could potentially face comparable security risks due to its significant dependence on Coinbase for Bitcoin custody.
Friday also saw investors pulling a net $156 million from US spot Ether (ETH) ETFs, pushing October's net outflows to an unprecedented $1.61 billion. This surpassed the previous monthly record of $1.42 billion set in November 2025.
The withdrawals throughout October completely wiped out the Ether funds' net inflows accumulated during 2026, resulting in them ending the year with approximately $45 million in net outflows.