Bitcoin exchange-traded funds suffered $643.33 million in net outflows on Friday, a sharp reversal that wiped out four consecutive days of accumulation and pushed weekly flows into negative territory with a net loss of approximately $202.6 million.
BlackRock's IBIT led the exits with $233.70 million withdrawn. Fidelity's FBTC saw $201.04 million redeemed, while Ark 21Shares' ARKB recorded a $129.55 million reduction. Grayscale's GBTC lost $53.32 million, and Bitwise's BITB shed $25.72 million. The selling extended to Ether and Solana ETFs as well.
The market reaction followed a security breach at Binance disclosed after Thursday's U.S. ETF trading session closed. Friday marked the first full trading day for institutional investors to respond to the incident.
Total trading volume for Bitcoin ETFs surged to $6.35 billion on Friday, roughly three times Thursday's volume. Despite the activity, net assets across these products fell below $100 billion to $98.14 billion.
Ether ETFs faced substantial redemptions, losing $155.85 million on Friday—their fifth consecutive daily outflow. BlackRock's ETHA accounted for $76.64 million of these withdrawals, with ETHB losing $19.51 million. Grayscale's Ether Mini Trust and ETHE posted withdrawals of $34.14 million and $21.51 million, respectively. Weekly ether ETF outflows reached approximately $431.5 million.
Solana ETFs lost another $10.74 million on Friday, bringing weekly withdrawals to about $71.5 million. Grayscale's ZCSH product ended an eight-session inflow streak with a $4.57 million outflow. XRP saw $496,500 in exits.
The Binance security event has reignited custody concentration risk discussions. Yishi Wang, founder of OneKey, warned that large Bitcoin vehicles like BlackRock's IBIT could become targets for sophisticated attackers. Wang's comments described a hypothetical risk; no evidence suggests IBIT itself was targeted.
