Bitcoin ETFs Lose $1.04 Billion Amid Market Sell-Off
2 min read
US spot Bitcoin exchange-traded funds recorded $1,041.8 million in net outflows across October 30 and November 2, 2026, according to Farside Investors. The withdrawals reversed four consecutive trading days of inflows as Bitcoin prices weakened ahead of the US midterm elections.
The figures represent net ETF fund flows, not the amount investors lost through changes in Bitcoin’s price. They show redemptions across regulated investment products rather than losses of customer deposits.
Key Takeaways
- Friday’s withdrawals reversed $440.8 million accumulated during the previous four trading sessions.
- BlackRock’s IBIT recorded the largest individual fund outflow on Monday.
- Falling Treasury yields failed to support Bitcoin as technology stocks declined.
- Leveraged cryptocurrency positions faced substantial forced liquidations.
Bitcoin Falls Despite Lower Treasury Yields
The withdrawals coincided with an unusual divergence between Bitcoin prices and US Treasury yields.
According to CryptoSlate, 10-year US inflation-protected Treasury yields declined 16 basis points, from 2.76% to 2.60%, between October 21 and October 30.
Over the same period, Coinbase Bitcoin prices dropped 8.25%, from $84,133.56 to $77,191.25, while the Nasdaq-100 fell 4.82%. The simultaneous declines indicated that weaker technology shares and cryptocurrency selling pressure outweighed the potential benefit of lower real yields.
Binance Breach and Leveraged Liquidations
Crypto trading firm Wintermute linked the broader downturn to the October 29 Binance security breach, which involved approximately $6.36 billion.
Market liquidations reached approximately $1.5 billion, with long positions accounting for roughly 85% of forced closures, according to CryptoSlate’s reporting on Wintermute’s analysis.
Wintermute said Bitcoin dip buying was concentrated in leveraged perpetual futures, leaving no clear evidence of fresh capital behind a bounce.
The concentration of buying in leveraged derivatives suggested limited support from fresh spot-market investment.
BlackRock Leads ETF Redemptions
On October 30, US spot Bitcoin ETFs lost $643.2 million, their largest daily outflow since June, according to HedgeCo.
BlackRock’s two-session withdrawals totalled $639 million, approximately 61.3% of aggregate net outflows. Its Monday redemptions exceeded the industry’s net withdrawal because other funds recorded offsetting inflows.
Bitcoin’s November 2 Coinbase price observation was approximately $77,062. Early Tuesday trading was near $76,861, below Glassnode’s estimated $81,500 average ETF-holder cost basis.
The figures do not establish that ETF redemptions directly caused the price decline.
| Fund | October 30 | November 2 |
|---|---|---|
| BlackRock IBIT | -$233.7M | -$405.3M |
| Fidelity FBTC | -$201.0M | +$6.7M |
| ARK 21Shares ARKB | -$129.5M | $0.0M |
| Grayscale GBTC | -$53.3M | $0.0M |
| Bitwise BITB | -$25.7M | $0.0M |
| All US spot Bitcoin ETFs | -$643.2M | -$398.6M |
Live Bitcoin chart
Data: CoinGecko. Prices in USD.
