Institutional demand took a step back on Thursday. Bitcoin ETF outflows reached $171 million, the largest single-day redemption since March 3 . The selling came as markets feared another weekend escalation in the US-Iran conflict. Bitcoin fell below $70,000 and is now trading near $66,570 .
Bitcoin ETF Outflows: The Numbers
BlackRock’s IBIT led the outflows with $41 million . Fidelity’s FBTC followed at $32 million, ARKB shed $30.5 million, and GBTC lost $24 million . The selling came after weeks of strong demand that pushed March inflows to $1.36 billion .
Despite the dip, Bloomberg analyst Eric Balchunas noted that Bitcoin ETFs are “just one good day away” from flipping year‑to‑date flows positive . He praised the funds for their “incredible fortitude,” especially after a 46% correction from the October all‑time high. For context, when gold fell 40% a decade ago, it lost a third of its investors .
Why Investors Are Nervous
The sell‑off follows reports that the US is sending thousands of troops to the Middle East . President Trump extended a ceasefire on Iranian energy infrastructure by 10 days, citing constructive talks . But analysts warn that markets remain jittery after being caught off guard by the initial strikes on Feb. 28, which happened during “constructive negotiations” .
My Thoughts
Bitcoin ETF outflows are a reminder that institutional money can be just as skittish as retail when geopolitical risk spikes. The outflows are significant but not catastrophic—March is still on track for the first positive month since October.
The real test is the weekend. If the ceasefire holds, Monday could see a reversal. If fighting resumes, expect another leg down. For now, traders are reducing risk ahead of the unknown.
