Bitcoin ETFs Lose $643M in a Day, Leaving 2026 Flows Just Above Break-Even

U.S. spot Bitcoin ETFs faced one of their steepest withdrawal days of the year on Friday, as investors pulled $643.3 million from the funds. The outflow, the largest since June 25, occurred in the first trading session after the $6.3 billion Binance hack and significantly reduced the products’ accumulated gains for 2026.

According to SoSoValue, the ETFs had recorded more than $1 billion in net inflows since January before Friday’s withdrawals. The latest capital flight erased 63.6% of that amount, leaving the funds with only a marginal positive net inflow for the year.

Friday’s withdrawal ranked as the 12th-largest daily outflow since spot Bitcoin ETFs debuted in January 2024. The previous larger redemption took place on June 25, when investors withdrew $696.3 million.

BlackRock’s IBIT was the biggest contributor to the decline, recording $233.70 million in outflows. Fidelity’s FBTC followed with $201.4 million withdrawn by investors.

These ETFs hold Bitcoin directly and allow investors to access the cryptocurrency through shares traded on traditional exchanges. Their capital flows are closely watched because they offer insight into institutional demand without requiring investors to hold Bitcoin themselves.

The latest $643.3 million exit narrowly exceeded the $635.5 million withdrawal recorded on October 22. It also reinforced signs of weakening spot demand, with the Coinbase premium remaining another closely monitored indicator of buying pressure from U.S. investors.

Bitfire Research said the withdrawals reduced the combined assets under management of U.S. spot Bitcoin ETFs to $98.14 billion, taking the total below $100 billion. The firm also reported continued weekly net outflows from spot Ether ETFs.

The research provider highlighted a negative Coinbase premium ranging from -0.18% to -0.27%, while the Crypto Fear & Greed Index declined to the 30–34 range. These readings suggested that institutional demand and spot-market buying momentum had weakened.

The Binance security breach was cited as a key reason for the sudden deterioration in sentiment. Derive, a decentralized exchange focused on options trading, said the $6.3 billion exploit added fresh uncertainty to an already pressured market.

Nick Forster, founder and CEO of Derive, told CoinDesk that the attack prompted investors to reduce their exposure as they sought protection against further market losses. He noted that Friday was the first trading day after the incident for U.S. spot Bitcoin ETF investors to react.

Three events that could influence Bitcoin demand

Bitfire Research identified three upcoming developments that could shape market sentiment and institutional investment decisions.

The November 3 U.S. midterm elections could influence the country’s political direction and determine how cryptocurrency regulation develops during the final two years of President Donald Trump’s administration.

Investors will also focus on the November 6 nonfarm payrolls report, which will reveal the condition of the U.S. labor market in October. The figures could alter expectations for Federal Reserve interest-rate policy and affect demand for risk assets, including Bitcoin.

The third factor is MSCI’s final decision on companies covered by its updated rules for non-operating businesses. Strategy and Metaplanet, both prominent corporate Bitcoin holders, have been identified as potential candidates for exclusion from MSCI indexes.

Removal from the benchmarks could force passive investment funds to reduce or sell their positions in the companies. The resulting pressure on their shares could also complicate efforts to raise additional capital for expanding their Bitcoin holdings.