Spot Bitcoin ETFs in the U.S. saw net outflows of $643.3 million on Friday, October 30, reaching their highest level in four months, while analysts viewed the move as risk reduction rather than a loss of institutional confidence.
According to The Block, citing SoSoValue data, spot Bitcoin ETFs recorded their largest daily net outflow since June 25. Spot Ethereum ETFs also saw outflows of $155.9 million that day; the last time Ethereum funds saw a daily outflow of this size was October 7.
The daily move was sharper than the total for the week ending October 30. Bitcoin ETFs ended the week with $202.6 million in net outflows, while Ethereum ETFs closed with $431.5 million in net outflows. Daily and weekly figures reflect the net difference between inflows and outflows over the respective periods.
Do the large outflows mean institutional confidence is gone?
The outflows came one day after Binance was hit by an attack involving approximately $6.3 billion. Jeff Ko, chief analyst at ViaBTC, interpreted the figures as a shock to investor sentiment. Ko emphasized that spot ETF Bitcoin holdings are held by regulated custodians and that ETF investors are not directly exposed to Binance through these funds.
Rick Maeda, head of markets at Laevitas, also pointed to the outflow’s share of total fund assets. Compared with the $98.14 billion in net assets held by spot Bitcoin ETFs, Friday’s outflow was less than 1%. According to Maeda, this points to a day when institutional investors reduced their risk rather than abandoned the market.
How did Bitcoin and Ethereum prices perform?
In the price snapshot reported by The Block, Bitcoin was at $78,491 and Ethereum at $2,296 as of 07:20 TRT on Monday, November 2. Over the previous 24 hours, Bitcoin rose 1% and Ethereum rose 1.3%. These prices reflect the period following Friday’s ETF trading.
On Sunday, the Crypto Fear & Greed Index stood at 37, in the fear zone. Maeda described investor behavior as cautious rather than panicked, while Ko also highlighted Bitcoin’s resilience in the face of the attack.
What would it take for funds to see a strong return of inflows?
Analysts believe ETF demand may remain cautious in the short term. Maeda said that if the attack remains under control at its current scale, he expects stability or limited outflows rather than a sudden reversal. Zeus Research analyst Dominick John, meanwhile, tied a sustained strengthening in inflows to a recovery in market stability, liquidity, and investor confidence.
The $3.64 billion in net outflows following the reopening of withdrawals on Binance reflects the exchange’s own customer activity, while ETF data presents a separate picture of fund investors’ demand. Another key issue markets are watching is the U.S. midterm elections on November 3 and their potential impact on crypto regulation.
Not investment advice.