US spot Bitcoin exchange-traded funds saw a notable increase in withdrawals on Thursday, recording $171 million in net outflows, the largest single-day exit in three weeks. The sell-off affected all major ETFs as Bitcoin’s price dropped below the $70,000 mark, adding fresh volatility to digital asset markets against a backdrop of rising geopolitical strain in the Middle East.
Major ETF Providers Register Significant Withdrawals
Leading asset managers faced substantial redemptions during the session. BlackRock’s iShares Bitcoin Trust (IBIT), which has become one of the largest spot Bitcoin ETFs by trading volume since its January launch, accounted for $41 million of the outflows. Fidelity’s FBTC experienced $32 million in redemptions, while ARK 21Shares’ ARKB saw $30.5 million withdrawn. Grayscale’s GBTC registered $24 million in exits, continuing recent trends after its earlier conversion to an ETF structure.
Earlier in March, Bitcoin ETFs had attracted $1.36 billion in net deposits, signaling renewed investor confidence. Monthly data from institutional research group Sosovalue indicated the funds remain ahead for the month, on course for their first net accumulation period since October last year, when US Bitcoin funds took in $3.42 billion.
Commenting on current market moves, senior ETF analyst Eric Balchunas noted that the funds remain just a single strong trading day away from turning year-to-date outflows positive. Balchunas described the ETF sector as displaying “incredible fortitude” throughout Bitcoin’s 46% price retracement from its October high.
Bitcoin Price Slides as Global Risks Intensify
During the latest session, Bitcoin changed hands at $67,780, a decline of 4.7% over the week. The cryptocurrency fell below the $70,000 threshold, reversing gains that had brought it to record highs earlier in the year. Market data shows heightened sensitivity to new developments in global risk factors.
MEXC Research chief analyst Shawn Young pointed to the surge in ETF redemptions as a direct response to rising geopolitical uncertainty. As tensions involving the US, Israel, and Iran escalated, Young observed that institutional investors began to reduce their Bitcoin positions. However, Young underscored that net flows remained positive overall during the conflict period, suggesting continued resilience in global demand.
International attention has focused on the recent US military buildup in the Middle East, which includes the deployment of thousands of troops as part of regional security operations.
In a related development, US President Donald Trump extended the freeze on Iranian energy infrastructure actions by an additional 10 days, moving the deadline to April 6. Trump justified the decision by describing the ongoing negotiations between parties as constructive.
Kyle Rodda, senior financial analyst at Capital.com, characterized market sentiment as wary of further unexpected escalations in the region. He noted that recent US troop movements have raised risk perceptions across financial markets, leading to defensive adjustments among traders and fund managers. Previous strikes, such as those on February 28, had already taken investors by surprise during a period of delicate negotiations.
