US spot Bitcoin exchange-traded funds recorded $171 million in outflows on Thursday, marking their steepest day of redemptions since March 3, when they shed $348 million. The withdrawals span several major funds and come against a backdrop of rising geopolitical uncertainty in the Middle East. Despite the sharp single-day figure, analysts note the broader monthly picture remains relatively resilient.
BlackRock‘s iShares Bitcoin Trust ETF led the day’s outflows with $41 million in redemptions. Fidelity‘s Wise Origin Bitcoin Fund followed with $32 million, while the ARK 21Shares Bitcoin ETF saw $30.5 million exit and Grayscale‘s Bitcoin Trust ETF recorded $24 million in outflows, according to data from Farside Investors.
The single-day losses come after a period of sustained demand for Bitcoin ETFs. According to Sosovalue data, the funds have attracted $1.36 billion in net inflows so far in March and are on course for their first month of net accumulation since October 2025, when they drew $3.42 billion. That broader context suggests Thursday’s outflows may represent a temporary disruption rather than a sustained reversal.
Bitcoin itself came under pressure on Thursday, falling below the $70,000 level. The asset declined 4.7% over the preceding week and was trading at $67,780 at the time of reporting, according to CoinMarketCap. Spot Bitcoin ETFs listed in the US are widely regarded as a barometer of institutional appetite for the cryptocurrency.
Senior Bloomberg ETF analyst Eric Balchunas offered a measured assessment of the situation, stating that the funds are just “one good day away” from erasing their year-to-date outflows. He praised the ETFs for their “incredible fortitude” given that Bitcoin has corrected 46% from its all-time high of $126,198 reached in October 2025. Balchunas drew a historical comparison, noting that when gold fell 40% over a short period roughly a decade ago, approximately one-third of its investors exited their positions.
The outflows coincide with reports that the US Department of War is deploying thousands of soldiers to the Middle East, according to sources cited by Reuters on Tuesday. On Thursday, US President Donald Trump announced a ten-day extension to a ceasefire on Iranian energy infrastructure, pushing the deadline to April 6 and citing constructive ongoing negotiations as the basis for the decision.
Despite the ceasefire extension, anxiety persists among market participants. Kyle Rodda, senior financial analyst at Capital.com, told Cointelegraph that investors remain concerned about the possibility of an unexpected escalation over the weekend. Rodda noted that confidence was shaken after US and Israeli strikes on Iran on February 28 caught markets off guard, occurring in the middle of what had appeared to be constructive diplomatic talks.
Originally reported by CoinTelegraph.
