Bitcoin ETF

Greed

Bitcoin

SoSoValue

US spot Bitcoin exchange-traded funds (ETFs) recorded more than $1 billion in net outflows over three trading days, but crypto asset manager Bitwise says the withdrawals do not signal a lasting retreat by institutional investors.
Investors pulled another $116 million from the funds on Tuesday, bringing net outflows since Friday to $1.16 billion, <a href="https://sosovalue.com/assets/etf/us-btc-spot" rel="noopener noreferrer nofollow">according</a> to SoSoValue data.
“I do think it’s related to a short-term risk-off environment rather than a structural change in institutional sentiment,” Bitwise’s head of research, André Dragosch, told Cointelegraph.
The withdrawals followed <a href="https://ct.com/news/binance-linked-wallet-faces-possible-exploit-blockchain-researcher-warns" rel="noopener noreferrer nofollow">Binance’s $6.3 billion hack</a> on Thursday, which raised concerns about investor confidence and ETF custody security.
Dragosch attributed the outflows to weaker market sentiment rather than fears over the safety of ETF holdings.
<h2 id="institutions-are-holding-on">Institutions are holding on</h2>
Dragosch said ETF flows reflect both long-term institutional adoption and shorter-term changes in investor sentiment.
He cited a recent Bitwise survey of 15 institutions, none of which had reduced their Bitcoin ETF exposure during the bear market. US regulatory filings also showed that most institutional investor categories, apart from hedge funds, had largely maintained their positions.
Related: <a href="https://cointelegraph.com/markets/bitcoin-etf-mixed-read-institutional-demand-coinshares" rel="noopener noreferrer nofollow">Bitcoin ETF inflows leave institutional demand unclear: CoinShares</a>
Retail investors still account for the majority of Bitcoin ETF holdings and tend to react more strongly to market volatility, according to Dragosch.
Bitwise’s analysis found that ETF inflows are closely tracked broader crypto market sentiment, which weakened around the Binance hack, he said.
<h2 id="outflows-slow-as-bitcoin-sentiment-improves">Outflows slow as Bitcoin sentiment improves</h2>
Tuesday’s $116 million in outflows marked a slowdown from <a href="https://ct.com/markets/blackrocks-ibit-biggest-bitcoin-etf-outflow-june" rel="noopener noreferrer nofollow">Monday’s $399 million and Friday’s $643 million</a>, extending the funds’ withdrawal streak to three trading sessions.
The Crypto Fear &amp; Greed Index <a href="https://alternative.me/crypto/fear-and-greed-index/" rel="noopener noreferrer nofollow">rose</a> to 34 from 26 on Monday, though it remained in the “Fear” category. Bitcoin gained about 1.6% over the past 24 hours, to trade near $78,000 at publication, <a href="https://www.coingecko.com/en/coins/bitcoin" rel="noopener noreferrer nofollow">according</a> to CoinGecko.
The latest withdrawals brought the funds’ net outflows for 2026 to approximately $153 million.
Related: <a href="https://ct.com/news/binance-fake-job-interviews-compromised-ai-tool-hack" rel="noopener noreferrer nofollow">Binance traces $6.3B hack to fake job interviews, compromised AI tool</a>
<h2 id="binance-hack-raises-questions-about-etf-custody">Binance hack raises questions about ETF custody</h2>
The Binance hack has <a href="https://ct.com/markets/bitcoin-etfs-october-red-binance-hack-outflows" rel="noopener noreferrer nofollow">raised concerns among some industry observers</a> about crypto ETFs custody, particularly because major funds rely on a small number of custodians.
Dragosch pointed to differences between the security arrangements used by crypto exchanges and institutional custodians, noting that the Binance incident affected hot wallets, which are connected to the internet, rather than cold wallets.
“In contrast, institutional funds held at Coinbase custody are custodied in cold storage which, by definition, are not connected to the internet,” Dragosch said.
Magazine: <a href="https://ct.com/magazine/wall-street-killed-bitcoins-wild-rallies-markus-thielen" rel="noopener noreferrer nofollow">Wall Street killed Bitcoin’s wild rallies: 10x’s Markus Thielen</a>

Bitcoin ETFs lose $1.16B as Bitwise calls selling ‘short-term’

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Cointelegraph

Other articles published on Nov 4, 2026

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