Spot bitcoin exchange-traded funds (ETFs) lost approximately $296 million in capital during the week of March 24 to 27.
Analysts believe the large outflow reflects a sharp shift toward risk-off sentiment in global markets. Prolonged geopolitical tensions and macroeconomic factors are driving the move.
The bulk of outflows came from BlackRock’s iShares Bitcoin Trust (IBIT). According to Farside Investors, the largest single-day outflow occurred on March 27, totaling $225.5 million.
The week began with a $167.2 million inflow on Monday, but sentiment reversed quickly.
What’s Happening in the BTC ETF Space?
eToro analyst Josh Gilbert noted that markets are in defensive mode. Oil prices have surpassed $100 per barrel. Against this backdrop, traders are speculating that inflation could pick up. That would likely keep the Federal Reserve from cutting interest rates anytime soon.
Meanwhile, President Donald Trump stated he is considering a potential seizure of Iranian oil and Kharg Island. Such action would only heighten geopolitical risks.
Peter Chang of Presto Labs added that the outflows appear moderate compared to previous periods. Pratik Kala of Apollo Crypto emphasized that $290 million is a normal volume given quarterly portfolio rebalancing and hedge fund activity in basis trading.
Earlier in March, bitcoin ETFs posted strong inflows. According to Bloomberg Intelligence, the funds attracted about $2.5 billion over the past month, offsetting a significant portion of outflows from the start of the year.
How Is BTC Performing?
At the time of publication, BTC▼$63,699.00 trades in a narrow range between $67,500 and $67,600. It showed modest gains over the past 24 hours but fell to a three-week low over the past week.
The S&P 500 posted its fifth consecutive weekly decline, marking its longest losing streak since 2022.
Analysts note that a de-escalation of the Middle East conflict could trigger a relief rally. If tensions persist, markets will likely remain in defensive mode with heightened volatility.
