Bitcoin ETFs Shed $296M as Risk-Off Mood Hits Markets

TLDR

• Bitcoin ETFs recorded about $296 million in net outflows between March 24 and March 27.
• BlackRock’s IBIT led the weekly redemptions with the largest single-day withdrawal on Friday.
• U.S. spot Bitcoin ETFs lost $225.5 million in one day after starting the week with $167.2 million in inflows.
• Market analysts linked the outflows to a broader risk-off shift across global financial markets.
• Rising oil prices and fading rate cut expectations increased pressure on risk assets.

Bitcoin ETFs recorded more than $290 million in weekly outflows as global markets turned defensive. Farside Investors data showed $296 million exited U.S. spot products between March 24 and March 27. The withdrawals followed early inflows, yet sentiment reversed as geopolitical tensions and macro pressures intensified.

Bitcoin ETFs Register Weekly Outflows

Bitcoin ETFs posted cumulative outflows of about $296 million during the week, according to Farside Investors. The data covered March 24 through March 27 and showed steady redemptions across major funds. BlackRock’s IBIT led the withdrawals as investors reduced exposure to risk assets.

IBIT recorded the largest single-day movement on Friday with heavy redemptions. U.S. spot Bitcoin ETFs saw $225.5 million exit that day alone. However, the week had opened with $167.2 million in inflows on Monday before momentum shifted.

Market participants linked the reversal to broader risk aversion in financial markets. Josh Gilbert of eToro said, “Risk-off is clearly the mood amongst markets.” He added that macro forces were compounding and pressuring digital assets.

Gilbert pointed to Bitcoin’s drop to a three-week low during the sell-off. He also highlighted the S&P 500’s fifth straight weekly decline, its longest since 2022. He said rising oil prices fueled inflation fears and delayed expected rate cuts.

He stated, “Triple-digit oil is fuelling inflation fears, which pushes rate cut expectations further out.” He explained that delayed cuts remove the catalyst risk assets need to stabilize. As a result, traders reduced positions in volatile markets.

Bitcoin Price Holds Near $67,000 as Volatility Persists

Bitcoin traded near $68,000 on Sunday, according to CoinGecko data. The asset fell about 2% in 24 hours and around 6% over seven days. The decline came as the Iran conflict entered its fourth week and lifted crude prices.

Peter Chung of Presto Labs attributed ETF outflows to broad market weakness. He said, “I think what drove it was the general risk-off trend.” He added that fading ceasefire expectations contributed to the pressure.

Chung also said the weekly outflow did not appear extreme compared to recent trends. Pratik Kala of Apollo Crypto shared a similar view on the flows. He said the $290 million figure was “quite normal” and tied it to quarter-end rebalancing.

Kala stated that ETF flows include hedge fund basis trades and not only directional positions. He said these mechanics limit the use of weekly data as structural signals. He added that Bitcoin’s relative strength against other assets remained supportive.

Gilbert said Bitcoin had held up better than equities during the conflict period. However, he warned that the asset remains exposed to broad sell-offs. He also noted that markets increasingly price in a potential Federal Reserve rate hike.

He said this outlook contrasts with earlier expectations for multiple cuts. He flagged upcoming remarks from Federal Reserve Chair Jerome Powell as a focal point. Bitcoin traded at $67,574, up 1.4% in 24 hours, after briefly touching $65,000 on Monday.

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