Investors Pull $643M From Bitcoin Funds After Huge Binance Hack

Bitcoin ETFs saw their biggest October outflow following a record $6.4 billion crypto hack, as prices dipped and investors grew nervous.

A record-breaking hack has rattled crypto investors, and the numbers show just how nervous they've become.

On Thursday, attackers drained roughly $6.4 billion from Binance (the world's largest crypto exchange, a platform where people buy and sell digital currencies). This was the largest crypto hack in history. The very next trading day, investors rushed to pull their money out of crypto investment funds.

What is an ETF? A spot Bitcoin ETF (Exchange-Traded Fund) is a product that holds real Bitcoin and trades on the stock market like a normal company share. It lets people invest in Bitcoin through an ordinary brokerage account, without owning the coins directly.

Here's how much money left these funds on Friday:

Bitcoin ETFs: -$643.2 million (their biggest single-day outflow of October)
Ethereum ETFs: -$155.7 million (a fifth straight day of losses)
Solana ETFs: -$10.8 million

"Outflows" simply means investors are taking money out, which is a sign of fear or caution.

Despite the scare, crypto prices held up better than expected:

Bitcoin fell about 4% Friday, then steadied near $77,520 on Saturday
Ethereum traded near $2,251 (down 3.9% for the week)
Solana near $96 (down 4.5% for the week)

There's some good news too. Binance promised to cover all losses using its own funds and emergency reserves. Meanwhile, Tether and Circle (companies behind popular stablecoins) froze over $2.3 billion of the stolen money, making it harder for thieves to use it.

Other worries are adding pressure. The Federal Reserve (the U.S. central bank that sets interest rates) kept rates steady at 3.75%–4%, but some officials want a hike, and traders see over 70% odds of an increase in December. Higher rates often push investors away from riskier assets like crypto.

Bottom line: The hack tested investor confidence, and while prices didn't crash, the large fund outflows show many people are playing it safe for now.

This is an AI-generated summary. Read the original article at: https://decrypt.co/382309/bitcoin-etf-investors-exits-record-binance-hack