Bitcoin investment funds in the U.S. recorded a substantial reversal on Friday as spot ETFs experienced $643.3 million in net withdrawals. The outflow was their largest since June 25 and came during the first trading session after the $6.3 billion Binance hack.

Before the latest sell-off, spot Bitcoin ETFs had accumulated more than $1 billion in net inflows since the start of 2026. Friday’s redemptions wiped out 63.6% of those gains, leaving the funds with only a small positive net flow for the year, according to SoSoValue.

The withdrawal was the 12th-largest daily outflow since these investment products began trading in January 2024. The previous larger capital exit occurred on June 25, when the funds lost $696.3 million.

BlackRock’s IBIT led the decline with $233.70 million in net outflows, while Fidelity’s FBTC recorded withdrawals of $201.4 million.

Spot Bitcoin ETFs allow investors to gain exposure to the cryptocurrency through shares traded on conventional exchanges. Since the funds hold Bitcoin directly, their inflows and outflows are frequently used to assess institutional interest in the asset.

Friday’s withdrawal also exceeded the $635.5 million outflow reported on October 22. The movement points to weakening demand for Bitcoin, with the Coinbase premium providing another indication of reduced buying activity among U.S. investors.

Bitfire Research said the latest withdrawals pushed total assets under management across U.S. spot Bitcoin ETFs down to $98.14 billion, below the $100 billion level. The firm also noted that spot Ether ETFs continued to experience weekly net outflows.

According to the research firm, the Coinbase premium remained negative within a range of -0.18% to -0.27%, while the Crypto Fear & Greed Index fell to between 30 and 34. Both indicators reflected softer institutional participation and reduced demand in the spot market.

Derive, a decentralized exchange specializing in crypto options, attributed the sharp withdrawal to the $6.3 billion Binance exploit that occurred late Thursday.

Nick Forster, Derive’s founder and CEO, told CoinDesk that market conditions were already fragile before the attack. However, the breach increased uncertainty and encouraged investors to protect their portfolios against further losses. Friday marked the first opportunity for U.S. spot Bitcoin ETF investors to respond to the incident through trading.

Upcoming developments in focus

Bitfire Research outlined three events that could influence market sentiment and investment flows over the coming days.

The first is the November 3 U.S. midterm election. The results could affect the country’s political balance and shape the regulatory agenda for the remainder of President Donald Trump’s current term.

The second is the October U.S. nonfarm payrolls report, scheduled for November 6. The employment data could reshape expectations surrounding Federal Reserve monetary policy, potentially influencing Bitcoin and other risk-sensitive investments.

The third development is MSCI’s final decision on companies covered by its revised rules for non-operating businesses. Strategy and Metaplanet, both major corporate Bitcoin holders, have been identified as potential candidates for removal from the provider’s indexes.

If MSCI removes either company, passive funds tracking its benchmarks could be required to sell their shares. Such a move could weigh on their stock prices and potentially make it harder for the companies to secure additional funding for future Bitcoin acquisitions.