BlackRock sold $550 million of these cryptocurrencies on Monday

BlackRock’s (NYSE: BLK) spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) recorded almost $550 million in combined net outflows on November 2.

Specifically, BlackRock’s iShares Bitcoin Trust (IBIT) accounted for the largest share of withdrawals, recording $405.3 million in net outflows.

Its iShares Ethereum Trust (ETHA) registered another $138.3 million in withdrawals, while the iShares Staked Ethereum Trust (ETHB) shed $4.6 million.

The combined outflows reached $548.2 million, highlighting weakening institutional demand for cryptocurrency investment products.

Weakening crypto ETF demand 

The withdrawals came amid a broader downturn across US-listed cryptocurrency investment products, which recorded approximately $545.3 million in combined net outflows on Monday.

Bitcoin ETFs led the withdrawals, recording $398.6 million in net outflows, while Ethereum funds registered another $139.7 million. Together, the two largest cryptocurrency ETF categories accounted for approximately $538.3 million in withdrawals.

Monday’s withdrawals extended the broader selling trend, marking the third consecutive day of net outflows. Bitcoin funds shed $739.2 million over the preceding seven days, while Ethereum ETFs recorded approximately $566.7 million in outflows.

The withdrawals followed a difficult end to October, as security concerns and weakening market sentiment weighed on cryptocurrency investments. 

Markets rattled after Binance hack 

A major source of uncertainty was the $6.3 billion Binance hack reported on October 29, which renewed concerns about centralized exchange security.

After Binance restored withdrawals, users withdrew approximately $4.65 billion against $1.01 billion in deposits within nine and a half hours, resulting in $3.64 billion in net outflows. 

Bitcoin subsequently fell towards $76,000 before partially recovering. The FBI attributed the attack to North Korean state-sponsored hackers, while Binance said it was working to cover the affected assets.

The incident added to existing market pressures, with Bitcoin losing approximately 7.3% in October amid wider credit spreads, a stronger US dollar and concerns about the broader cryptocurrency market.

Investors are also monitoring upcoming economic and political developments. The November 3 US midterm elections could influence the regulatory outlook for digital assets, while the November 6 nonfarm payrolls report may shape expectations for Federal Reserve interest-rate decisions.