U.S. Bitcoin ETFs recorded outflows of $171 million on Thursday, with market participants fearing further escalation in the conflict between the U.S. and Israel with Iran this weekend.
Update (March 27, 2026, 10:52 UTC: This article has been updated to include comments from Shawn Young, chief analyst at MEXC Research.)
The spot Bitcoin ETFs listed in the U.S. recorded $171 million in outflows on Thursday, the largest redemption volume since March 3, when they had $348 million in outflows.
BlackRock's iShares Bitcoin Trust ETF (IBIT) led the outflows with $41 million, followed by Fidelity's Wise Origin Bitcoin Fund (FBTC) with $32 million. The ARK 21Shares Bitcoin ETF (ARKB) recorded $30.5 million in sales, and Grayscale's Bitcoin Trust ETF (GBTC) had $24 million in outflows, according to data from Farside Investors.
The outflows occur after a period of strong demand for Bitcoin ETFs, which attracted $1.36 billion in inflows throughout March so far and are on track for their first month of net accumulation since October 2025, when they recorded $3.42 billion in net inflows, according to data from Sosovalue.
The spot Bitcoin ETFs listed in the U.S. are an indicator of institutional demand for Bitcoin
BTCR$ 347.108
, which fell below the mark of $70,000 on Thursday. BTC dropped 4.7% last week and was trading at $67,780 at the time of writing, according to CoinMarketCap.
Bitcoin ETF flows, in millions of U.S. dollars. Source: Farside Investors
The $171 million in outflows indicate that Bitcoin ETF investors are 'starting to pull back' and protect themselves against a possible geopolitical escalation in the conflict between the U.S. and Israel against Iran, said Shawn Young, chief analyst at MEXC Research, to Cointelegraph. Nevertheless, he added that net flows remain positive since the beginning of the conflict.
Even so, Bitcoin ETFs are just 'one good day' away from reversing their outflows year-to-date, said Eric Balchunas, senior ETF analyst at Bloomberg, who praised the 'impressive resilience' of these products in light of Bitcoin's 46% correction since its all-time high of $126,198 in October 2025.
'For context, when gold fell 40% over a short period about 10 years ago, one-third of investors abandoned the asset,' Balchunas said in a post on X.
Morgan Stanley registers update of S-1 form for MSBT Bitcoin ETF
Investors fear escalation of the war over the weekend
The sale of Bitcoin ETFs occurs after reports that the U.S. Department of Defense is sending thousands of soldiers to the Middle East, according to sources quoted by Reuters.
On Thursday, U.S. President Donald Trump announced a 10-day extension of the ceasefire on Iranian energy infrastructure, until April 6, citing ongoing constructive negotiations.
Source: Truth Social, President Donald Trump
Despite the announcement, market participants remain concerned about a potential unexpected escalation over the weekend, said Kyle Rodda, senior financial analyst at Capital.com, to Cointelegraph:
'In light of the risk of headlines and mixed reports on whether negotiations are taking place between the U.S. and Iran, the U.S. is moving assets and personnel to the Middle East to prepare for what appears to be a limited ground invasion.'
Investors are cautious after being caught off guard by the initial attacks from the U.S. and Israel on Iran on February 28, which occurred amid negotiations considered constructive, Rodda added.
