Key Takeaways
- • U.S. spot bitcoin ETFs recorded $430.2 million in net outflows on November 5, led by Fidelity's FBTC ($199.9 million) and BlackRock's IBIT ($105 million), bringing weekly net redemptions to approximately $869.8 million through Thursday, according to Kitco.
- • Binance customers withdrew a net $3.64 billion after the exchange reopened withdrawals following a cyberattack, pushing bitcoin down to approximately $77,900 on November 2; the FBI linked the $6.3 billion theft to North Korea's TraderTraitor group.
- • Morgan Stanley downgraded Coinbase and cut its price target by 53%, citing a weaker earnings outlook.
- • Institutional tokenization advanced, with Morgan Stanley using DTCC's new tokenization service and the NYSE adding Broadridge, Computershare, Equiniti and Superstate to its planned tokenized securities platform.
- • The SEC filed a criminal complaint against Bitget's operator BG Limited over unlicensed services to Thai customers, and Block faces a proposed $764 million Department of Justice settlement tied to an anti-money-laundering probe.
Summary
U.S. spot bitcoin exchange-traded funds recorded $430.2 million in net outflows on November 5, according to Kitco's weekly crypto SWOT commentary. Fidelity's FBTC led redemptions with $199.9 million, followed by BlackRock's IBIT with $105 million. Weekly net redemptions reached approximately $869.8 million through Thursday. Bitcoin fell below $76,000 before recovering that level, while the broader crypto market faced selling pressure after a sharp decline in technology stocks. Roughly $1.26 billion in leveraged crypto positions were liquidated over 24 hours.
The market weakness followed a sharp reversal at Binance. Bitcoin declined to approximately $77,900 on November 2 as Binance customers withdrew a net $3.64 billion after the exchange reopened withdrawals following a major cyberattack. Binance processed about $4.65 billion in withdrawals against $1.01 billion in deposits. The FBI linked the $6.3 billion theft to TraderTraitor, a North Korean hacking group known for sophisticated social engineering targeting crypto platforms.
Equity research and corporate developments were mixed. Morgan Stanley downgraded Coinbase and reduced its price target by 53%, citing a weaker near-term earnings outlook and exposure to challenging digital asset conditions. Block faces a proposed $764 million settlement with the U.S. Department of Justice related to a federal anti-money-laundering investigation, while its quarterly bitcoin gross profit declined roughly 50% amid lower Cash App trading fees.
Institutional infrastructure continued to advance. Morgan Stanley is among the first major banks to use DTCC's new tokenization service to create blockchain-based representations of U.S. stocks and Treasury securities. The NYSE added Broadridge, Computershare, Equiniti and Superstate to its planned tokenized securities platform, which aims to enable 24/7 trading and instant settlement subject to regulatory approval. According to CoinDesk, Broadridge, Computershare and Equiniti collectively serve nearly 5,000 listed companies, including almost 99% of the S&P 500. Schroders, overseeing approximately $1.1 trillion, is bringing its emerging markets bond strategy to Solana through a partnership with Centrifuge, and blockchain securities platform tZERO plans to go public via a merger with FG Imperii Acquisition Corp. at a valuation of approximately $350 million, with up to $231 million in SPAC trust cash subject to redemptions.
Regulatory and governance pressures also rose. The SEC filed a criminal complaint against BG Limited, operator of Bitget, alleging unlicensed trading services to Thai customers between 2022 and 2025, with access to Bitget's website and app slated to be blocked starting December 5. Nvidia, Costco and Nike are among the companies opposing OKX and Intercontinental Exchange's plans for tokenized equities, bringing the reported number of objectors to 50.
The market weakness followed a sharp reversal at Binance. Bitcoin declined to approximately $77,900 on November 2 as Binance customers withdrew a net $3.64 billion after the exchange reopened withdrawals following a major cyberattack. Binance processed about $4.65 billion in withdrawals against $1.01 billion in deposits. The FBI linked the $6.3 billion theft to TraderTraitor, a North Korean hacking group known for sophisticated social engineering targeting crypto platforms.
Equity research and corporate developments were mixed. Morgan Stanley downgraded Coinbase and reduced its price target by 53%, citing a weaker near-term earnings outlook and exposure to challenging digital asset conditions. Block faces a proposed $764 million settlement with the U.S. Department of Justice related to a federal anti-money-laundering investigation, while its quarterly bitcoin gross profit declined roughly 50% amid lower Cash App trading fees.
Institutional infrastructure continued to advance. Morgan Stanley is among the first major banks to use DTCC's new tokenization service to create blockchain-based representations of U.S. stocks and Treasury securities. The NYSE added Broadridge, Computershare, Equiniti and Superstate to its planned tokenized securities platform, which aims to enable 24/7 trading and instant settlement subject to regulatory approval. According to CoinDesk, Broadridge, Computershare and Equiniti collectively serve nearly 5,000 listed companies, including almost 99% of the S&P 500. Schroders, overseeing approximately $1.1 trillion, is bringing its emerging markets bond strategy to Solana through a partnership with Centrifuge, and blockchain securities platform tZERO plans to go public via a merger with FG Imperii Acquisition Corp. at a valuation of approximately $350 million, with up to $231 million in SPAC trust cash subject to redemptions.
Regulatory and governance pressures also rose. The SEC filed a criminal complaint against BG Limited, operator of Bitget, alleging unlicensed trading services to Thai customers between 2022 and 2025, with access to Bitget's website and app slated to be blocked starting December 5. Nvidia, Costco and Nike are among the companies opposing OKX and Intercontinental Exchange's plans for tokenized equities, bringing the reported number of objectors to 50.
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