Binance suffered a record hack, triggering $643M in single-day outflows from US spot bitcoin ETFs, the largest in four months.
Security & Exploits ·
US spot bitcoin ETFs experienced their largest single-day outflow in four months, shedding $643 million on Friday, according to reporting that tied the move to a significant security incident at Binance. The timing of the withdrawals coincided with what was characterized as a record-level hack affecting the exchange, suggesting investor concern about custody risk may have prompted the fund outflows.
The magnitude of Friday's outflow exceeded the typical daily trading volumes seen in these products over recent months, representing a sharp reversal from the generally positive inflows that have characterized the spot bitcoin ETF market since their launch. The last comparable outflow occurred on June 25, indicating that either a specific triggering event or a confluence of factors drove unusual redemption activity on this particular day.
What remains unclear is whether the outflows represent a permanent shift in investor positioning, temporary panic-driven selling, or reallocation between custody solutions. The extent of the Binance security breach, the number of users affected, and any recovery timeline for affected funds have not been detailed in available reports.