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funds suffered about US$399 million of net outflows on Monday, extending the selling that followed the US$643 million withdrawn during the previous trading session.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…