U.S. spot bitcoin exchange-traded funds (ETFs) saw $643.2 million flow out in a single day. It was the biggest daily net outflow in October, and the first regular trading day outflow after a roughly $6.4 billion hacking loss at Binance.

On Nov. 1 (local time), blockchain media outlet Decrypt reported that U.S. spot bitcoin ETFs posted a net outflow of $643.2 million in one day as of Oct. 31 (Korea time). It was the biggest daily net outflow in October. On Oct. 29, before news of the Binance hack became known, there was a net inflow of $17.2 million. A large outflow followed on the first regular trading day after that.

The outflow also snapped a run of net inflows totaling $441.0 million over the previous four trading sessions. On a weekly basis, spot bitcoin ETFs recorded net outflows of about $202.0 million, and about $516.0 million in cumulative net outflows for October. Cumulative net inflows since launch fell to $57.4 billion, while total net assets were tallied at $103.2 billion.

Flows into Ethereum and Solana ETFs were also weak. Ethereum ETFs saw $155.7 million flow out in a day, marking a fifth consecutive session of net outflows. Cumulative net outflows over that period totaled about $431.0 million, and about $1.61 billion for October as a whole. Solana ETFs also saw $10.8 million flow out. The five-session outflow total rose to about $72.0 million on a weekly basis. Solana ETFs posted net inflows on only two days in October.

Crypto asset prices also fell. Bitcoin slid about 4% on Oct. 31 (Korea time) to the $76,400 level, and more than $1.3 billion in leveraged positions were liquidated. It traded around $77,520 on Nov. 1, up 0.5% over 24 hours. It was down 3.3% on the week. Ethereum fell 3.9% on the week to around $2,251, and Solana slipped 4.5% to around $96. Total crypto market capitalisation held at about $2.7 trillion.

Some assessments said the price decline was relatively limited compared with the scale of the hack. Bitcoin fell about 4%, a smaller drop than the roughly 11% plunge recorded after an attempted attack targeting Binance in 2018. Binance said it would fully compensate losses from the hack using company funds and a user protection fund. Tether and Circle also froze more than $2.3 billion in stolen stablecoins.

ETF fund flows are used as a key indicator of investor sentiment among institutional investors and financial advisory firms. Since their January 2024 launch, spot bitcoin ETFs have recorded cumulative net inflows of $57.4 billion, while Ethereum ETFs have logged $12.2 billion since their July launch that year. As issuers disclose daily inflows and outflows, market participants use the data to gauge shifts in investment demand.

The macroeconomic environment is also a burden. The U.S. Federal Reserve held the benchmark rate at 3.75 to 4% as of the 28th of last month, but two members argued for a rate hike. The market priced in a more than 70% chance of a rate increase in December.

Bearish views on crypto prices also strengthened in prediction markets. On Myriad, a prediction market developed by Dastan, the parent company of Decrypt, Ethereum was seen as having a 51.3% chance of reaching $1,500 before $3,000. A week earlier, the probability of reaching $3,000 stood higher at 61.3%, but the outlook flipped. Solana was also seen as having a 53.7% chance of reaching $40 before $160, up from earlier levels.

The key question is whether the outflow will remain a temporary shock from the hack or lead to broader weakening sentiment toward crypto ETFs. Net outflows appeared across major crypto ETFs despite Binance's compensation plan and the stablecoin freezes. Market attention is focused on whether institutional money flows back in and whether outflows from Ethereum and Solana ETFs ease.