Institutional demand for cryptocurrency is facing a fresh test after US spot Bitcoin exchange-traded funds recorded another heavy round of withdrawals.
The funds suffered about US$399 million of net outflows on Monday, extending the selling that followed the US$643 million withdrawn during the previous trading session.
BlackRock’s iShares Bitcoin Trust accounted for about US$405 million of Monday’s outflow, its largest single-day withdrawal since June.
The selling follows the US$6.3 billion Binance hack, which has renewed concerns about the security of cryptocurrency market infrastructure.
Bitcoin subsequently slipped towards US$76,000 before stabilising around the US$77,000 level.
ETF flows have become one of the clearest indicators of institutional demand since spot Bitcoin funds were approved in the United States.
That makes the latest withdrawals significant even though they do not necessarily signal a long-term retreat from digital assets.
Investors are also dealing with broader uncertainty surrounding interest rates, economic data and risk appetite.
The key question now is whether ETF flows stabilise once the immediate fallout from the Binance breach fades.
Continued withdrawals would weaken one of Bitcoin’s strongest sources of demand, while a return to inflows could help restore confidence following one of the cryptocurrency market’s most disruptive security events of the year.
