[Crypto Radar] U.S. Bitcoin ETFs See $1 Billion in Net Outflows in Two Days... Election and Hack Fallout

More than $1 billion (approximately 1.3433 trillion won) flowed out of U.S. Bitcoin exchange-traded funds (ETFs) in just two days. Uncertainty surrounding the U.S. midterm elections and a large-scale hack of cryptocurrency exchange Binance are believed to have weakened investor sentiment and fueled selling.

AP Yonhap News

According to data compiled by Bloomberg on November 3, a total of $1.04 billion flowed out of U.S.-listed Bitcoin ETFs over the two trading days of October 30 and November 2. On November 2 alone, $405 million was withdrawn from BlackRock's iShares Bitcoin Trust (IBIT).

Caution is also evident in the derivatives market. Over the past 24 hours, the put-to-call ratio on cryptocurrency options exchange Deribit stood at about 1.2. A put option gives the holder the right to sell an asset at a predetermined price and is used to hedge against a price decline. A call option, by contrast, gives the holder the right to buy at a predetermined price and is used to position for a price rise. A put-to-call ratio above 1 indicates that investors are relatively more inclined to hedge against downside risk. Alex Kuptsikevich, an analyst at FxPro, said, "The market outlook is gloomy, and prices look set to test the most important support level of the past several months." He added that a sharp reversal would be difficult to expect without a clear catalyst for a rebound.

The U.S. midterm elections are also adding to uncertainty in the cryptocurrency market. During his presidential campaign, U.S. President Donald Trump pledged to pursue cryptocurrency-friendly policies, including the creation of a strategic Bitcoin reserve. In 2025, the GENIUS Act, which establishes a federal regulatory framework for stablecoins, was passed. However, the Clarity Act, which the cryptocurrency industry has pursued as a subsequent legislative priority, failed to advance in the Senate in September 2026.

Some analysts say that if Democrats take control of both the House and the Senate in the midterm elections, they may focus more on tightening regulations and investigations than on the market-structure legislation sought by the industry. Bloomberg's analysis is that investor sentiment, which had improved with the support of the Trump Administration's cryptocurrency-friendly policies, could weaken, making it harder to pass additional cryptocurrency-friendly legislation.

The $6.3 billion cryptocurrency theft in a hacking attack on Binance on October 29 has also been cited as a cause of the outflows. The U.S. Federal Bureau of Investigation (FBI) identified the North Korean hacking group TraderTraitor as the party behind the incident. North Korea, however, has denied any involvement.

Meanwhile, the incident has prompted concerns that advances in artificial intelligence (AI) could leave not only cryptocurrency exchanges but also traditional financial institutions, such as banks, more vulnerable to cyberattacks. Binance founder Changpeng Zhao said in an interview with cryptocurrency news outlet CoinDesk, "If cryptocurrency exchanges can be hacked, I think banks are in an even more vulnerable position." He also proposed establishing common security standards or forming an industry-wide council so financial institutions can coordinate their response to cyberattacks.

This content was produced with the assistance of AI translation services.