U.S. Bitcoin spot funds (ETFs) recorded outflows of $171 million on Thursday, marking the biggest day of redemptions since March 3, when they recorded outflows of $348 million.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the outflow with $41 million, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $32 million, ARK 21Shares Bitcoin ETF (ARKB) sold for $30.5 million, and Grayscale’s Bitcoin Trust ETF (GBTC) sold for $24 million. According to based on data from Farside Investors.
The outflows follow a period of demand for Bitcoin ETFs, which have attracted $1.36 billion in monthly inflows so far in March and are on track for their first month of net accumulation since October 2025, with net ETF inflows of $3.42 billion. According to to Sosovalue data.
US-listed spot Bitcoin ETFs are a signal of institutional demand for Bitcoin (BTC), which fell below the $70,000 level on Thursday. BTC has dropped 4.7% over the past week and is trading at $67,780 at the time of writing, According to to CoinMarketCap.
Still, Bitcoin ETFs are just “one good day” away from reversing their year-to-date outflows, said Bloomberg ETF senior analyst Eric Balchunas, who praised the ETFs for their “incredible strength” amid Bitcoin’s 46% correction from its October 2025 record high of $126,198.
“For context, when the gold price dropped 40% in a short period of time about 10 years ago, 1/3 of investors bailed,” Balchunas said in Tuesday’s X report post.
Related: Morgan Stanley files changed S-1 for MSBT Bitcoin ETF
Investors fear a weekend escalation of the war
Bitcoin ETF selloff comes after reports that the U.S. War Department is sending thousands of troops to the Middle East, say sources familiar with the matter Reuters on Tuesday.
On Thursday, US President Donald Trump announced extending the ceasefire on Iran’s energy infrastructure by 10 days until April 6, citing ongoing constructive negotiations.
Despite the ceasefire extension, market participants remain worried about another unexpected escalation over the weekend, Kyle Rodda, senior financial analyst at Capital.com, told Cointelegraph. He said:
“Among the main risks and he said, she said games on whether U.S.-Iran negotiations are taking place, the United States is moving assets and personnel to the Middle East to prepare for what appears to be a limited ground invasion.”
Investors are concerned about a potential escalation after being caught off guard by the initial US and Israeli attacks on Iran on February 28, which occurred during constructive negotiations, Rodda added.
Warehouse: The “biggest catalyst for a Bitcoin bull run” would be the liquidation of Saylor, the founder of Santiment
