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Last week, from March 24 to March 27, over $290 million was withdrawn from Bitcoin exchange-traded funds (ETFs), according to data from Farside Investors. The majority of the outflow was attributed to the iShares Bitcoin Trust ETF (IBIT) managed by BlackRock, with investors withdrawing $201.5 million on March 27.
Analysts link the capital outflow to investors’ desire to mitigate risks amid rising geopolitical tensions and economic pressures. Specifically, eToro analyst Josh Gilbert pointed out the increased tension following statements from U.S. President Donald Trump regarding the possibility of “taking oil from Iran,” including the seizure of the island of Kharg.
The rise in oil prices above $100 per barrel heightens inflationary expectations and diminishes the likelihood of a swift easing of monetary policy by the U.S. Federal Reserve (Fed). In this context, risk assets, including cryptocurrencies, remain under pressure.
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According to Gilbert, Bitcoin has dropped to a three-week low and is trading above $67,000. The S&P 500 index has completed its fifth consecutive week of decline, marking the longest losing streak since 2022.
He added that if the conflict in the Middle East de-escalates, markets may shift towards growth. However, if tensions persist, investors are likely to continue holding assets in safe havens, which will be accompanied by increased volatility.
Peter Chung, head of research at Presto Labs, noted that the current outflow appears moderate compared to the beginning of the year. According to SoSoValue, from December 2025 to March 2026, over $9 billion was withdrawn from cryptocurrency ETFs.
Pratik Kala, director of research at Apollo Crypto, also indicated that the outflow of $290 million falls within normal ranges considering the quarterly rebalancing of portfolios.
Previously, senior analyst at Bloomberg Intelligence Eric Balchunas reported that Bitcoin ETFs attracted approximately $2.5 billion over the past month, offsetting a significant portion of the outflow observed since the start of the year.
