Crypto ETFs bleed $1.8B as Fed jitters and Binance breach spook investors

The bleeding slowed on the 3rd of November, but it didn't stop. Spot Bitcoin ETFs posted $115.6M in net outflows that day, a much lighter drain than the $398.6M yanked out a day earlier. Across just three trading sessions, from the 30th of October through the 3rd of November, the funds shed roughly $1.16B combined, according to Farside Investors data cited by AMBCrypto. The heaviest single hit landed on 30th October, when $643.2M walked out the door in one day.

One name did most of the damage. BlackRock's IBIT accounted for $734M of the three-day outflow, making it the biggest single contributor to the retreat. Stack Bitcoin's haul against Ethereum's and the picture gets uglier: spot ETH ETFs recorded about $656.4M in cumulative net outflows, pushing the combined crypto ETF bleed to roughly $1.8B.

Ethereum's losing run was the longer one — seven straight days of outflows stretching from the 26th of October to the 3rd of November. Bloomberg analyst James Seyffart told AMBCrypto that sentiment had been on the upswing through late September before October reversed a chunk of it. The math hurts: the average cost basis of ETH ETF holdings sits at $3,182 while ETH trades near $2,341, leaving investors with close to $3.47B in aggregate unrealized losses.

The altcoin ETF corner was mixed. XRP funds took a $529.51K net outflow on the 2nd of November, while BNB ETFs gave up $271.01K on the 3rd. Hyperliquid's spot ETFs bucked the trend with $605.08K in net inflows on the 3rd, a quick about-face from $2.86M in outflows the day before. Solana spot ETFs simply sat still, logging zero flows on both days.

The backdrop didn't help. The Federal Reserve held rates at 3.75%–4.00% in October, stoking worries that inflation is digging in. The 3rd of November U.S. midterm elections added another layer of caution, a modest dollar rebound squeezed dollar-denominated assets, and a Binance security breach injected fresh anxiety into crypto markets — a combination that may be speeding up institutional exits.