US spot Bitcoin exchange-traded funds registered $440.8 million in net inflows across four consecutive trading sessions through October 29, according to data from Farside Investors. This rebound in capital preceded a large-scale security breach at Binance that resulted in $6.3 billion in assets being stolen and a sharp decline in Bitcoin’s price below $77,000.
BlackRock leads ETF inflows
Daily inflows into spot Bitcoin ETFs stood at $110.3 million on October 26 and $176 million on October 27, before dropping to $137.3 million on October 28 and further declining to $17.2 million on October 29.
BlackRock’s iShares Bitcoin Trust (IBIT) accounted for the majority of these inflows, contributing $410.6 million across the four-day period. IBIT drew $110.3 million on Monday, $151.5 million on Tuesday, $136 million on Wednesday, and $12.8 million on Thursday—comprising about 93.1% of the total net flows for the category.
Fidelity’s FBTC added $35 million in the same stretch, with $24.5 million arriving on Tuesday and $10.5 million on Thursday. Bitwise’s BITB brought in $10.1 million over Wednesday and Thursday, and Morgan Stanley’s MSBT brought in $4.2 million on Thursday.
IBIT’s inflow represented almost 93% of net new funds to Bitcoin spot ETFs, while other leading products, including those from Fidelity and Bitwise, reported significantly lower contributions.
Not all funds saw gains. Grayscale’s Bitcoin Mini Trust experienced $15.3 million in outflows, while WisdomTree’s BTCW saw $3.8 million in net withdrawals over the same period. After considering all inflows and outflows, the sector’s net intake across the four sessions stood at $440.8 million.
Volatility following Binance security breach
The inflows to Bitcoin ETFs arrived after two tough trading days on October 22 and 23, which saw cumulative net outflows of $773.5 million as investors withdrew funds. The subsequent four-day inflow wave covered only about 57% of those prior losses, leaving a net gap of $332.7 million.
Binance reported that hackers breached certain hot wallets on October 30, stealing digital assets worth $6.3 billion. The breach began late on October 29. Following the incident, Bitcoin’s price plunged, dropping to nearly $76,944. Although this price move occurred after the hacking event, there is no direct evidence attributing all sales to the breach itself.
The majority of ETF inflows occurred before the Binance security incident. Market watchers are now awaiting new ETF flow data to assess investor reaction after the breach.
Binance stated it reserved over $6.34 billion of its own funds to cover potential losses and reported that $3 billion worth of stolen crypto assets was frozen with the help of industry partners. The exchange also paused withdrawals pending security reviews and indicated its reopening schedule would depend on completing these checks.
Investors and traders are now anticipating upcoming ETF flow reports to gauge any shifts in sentiment, and closely monitoring when Binance resumes withdrawal services.
Given the impact of real-time events on Bitcoin price and ETF flows, market participants seeking timely updates may benefit from using CryptoAppsy. Its live news monitoring and customizable price alerts can help users stay informed about changes following high-profile incidents like the Binance breach.
