Decentralized exchange Derive attributed the outflows to the massive $6.3 billion hack on Binance late Thursday.
“The market was already under pressure, but the Binance hack added another layer of uncertainty. $643M exits Bitcoin ETFs as traders rush to protect against further losses. The reaction from traditional investors has been significant. US spot Bitcoin ETFs recorded $643 million in net outflows on Friday, their first trading session following the hack,” Nick Forster, founder and CEO of Derive, told CoinDesk.
Derive is the world’s largest decentralized exchange for trading options, a derivative segment that is booming in the crypto market.
What next?
Looking ahead, three things matter in the immediate term, according to Bitfire.
First, the Nov. 3 U.S. midterm election, which could influence the regulatory outlook for President Donald Trump’s final two years in office.
Second, the Nov. 6 nonfarm payrolls report on the state of the U.S. labor market as of October. This report could influence Fed interest-rate expectations, with knock-on effects on all assets, including cryptocurrencies.
Third, MSCI’s final list of companies hit by its new rules for non-operating companies. The index provider has flagged leading bitcoin holders Strategy MSTR$130.49·Market Closed and Metaplanet as potential candidates for exclusion, which could expose both shares to passive fund selling pressure and indirectly affect their ability to stash more bitcoin.
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