BlackRock’s IBIT leads $290 million outflow from U.S. Bitcoin ETFs

U.S. spot Bitcoin ETFs recorded about $290 million in net outflows last week, with a $225.5 million one-day withdrawal on March 27 led by BlackRock’s iShares Bitcoin Trust, which saw $201.5 million leave, according to data compiled by Farside Investors.

Flows swung sharply over the week. After $167.2 million of inflows on March 23, redemptions built late in the week and culminated in the Friday drop. IBIT registered the largest single-fund outflow of the week.

Market drivers included higher oil prices, shifting expectations for interest-rate cuts, and rising geopolitical risk after President Donald Trump floated taking “the oil in Iran” and potentially seizing Kharg Island, a key export hub. Some asset managers also pointed to end-of-quarter portfolio rebalancing.

Bitcoin declined over the week but fell less than major U.S. stock indexes. The token rebounded after a $65,000 low and traded near $67,600 on March 30, up about 1.4% over 24 hours, according to market pricing. Over seven days, it was down roughly 6%. U.S. equities posted a fifth straight weekly loss, the longest since 2022, as crude advanced and investors reassessed policy risks.

“Risk-off is clearly the mood across markets,” observed Josh Gilbert, a market analyst at eToro, pointing to Bitcoin’s drop to a three-week low and the extended slide in the S&P 500. “Triple-digit oil is fuelling inflation fears, which pushes rate cut expectations further out, which in turn removes the very catalyst that risk assets need to find a floor.” He added that a ceasefire could spark a “strong relief rally,” but without credible de-escalation he expects “more choppy sessions ahead.”

Peter Chung, head of research at Presto Labs, viewed the risk-off tone as the main driver of ETF redemptions. He characterized last week’s pullback as modest relative to recent patterns and linked it to waning ceasefire expectations as peace talks faltered toward the end of the week.

Pratik Kala, head of research at Apollo Crypto, described the outflows as consistent with risk reduction and end-of-quarter rebalancing, calling the roughly $290 million figure “quite normal.” He cautioned against drawing long-term conclusions from weekly ETF flows, noting that arbitrage and basis trades by hedge funds can influence subscriptions and withdrawals from day to day. “Therefore, there are no hard limits or thresholds that would signal a structural change,” he explained.

Gilbert noted markets have increasingly priced the possibility of a Federal Reserve rate hike, in contrast to the multiple cuts that traders expected earlier this year, and flagged upcoming remarks by Fed Chair Jerome Powell as a potential pressure point for risk assets.

The week’s action unfolded as the Iran conflict entered its fourth week, contributing to higher crude prices and a broader pullback in risk assets by Friday. The new ETFs, designed to offer regulated exposure to spot Bitcoin, have become a gauge of institutional interest, with flows shifting quickly in response to headline risk and macro moves.