More than $290 million flowed out of Bitcoin exchange-traded funds last week as a broad risk-off shift continued to weigh on global markets. Data from Farside Investors shows cumulative weekly outflows of approximately $296 million between March 24 and March 27, led by heavy redemptions from BlackRock‘s IBIT and other major funds. The week began with a degree of optimism, as Monday recorded strong inflows of $167.2 million, but sentiment reversed sharply in the days that followed.
The steepest single-day move came on Friday, when total U.S. spot Bitcoin ETF outflows reached $225.5 million, with IBIT accounting for the bulk of those redemptions. The volatile week coincided with Bitcoin sliding to a three-week low and the S&P 500 recording its fifth consecutive weekly loss — its longest losing streak since 2022. Analysts point to a combination of macroeconomic and geopolitical pressures as the primary catalysts behind the shift in investor sentiment.
Josh Gilbert, a market analyst at eToro, described the prevailing mood as clearly risk-off, noting that macro forces are compounding against risk assets. He highlighted that triple-digit oil prices are fuelling inflation fears, which in turn pushes rate cut expectations further out and removes a key catalyst that risk assets need to find a floor. Gilbert also noted that markets are increasingly pricing in a Federal Reserve rate hike, a significant shift from the multiple cuts that were anticipated just months ago.
Geopolitical tensions escalated further after President Donald Trump told the Financial Times he could potentially seize Kharg Island, Iran’s major fuel hub. Gilbert said a ceasefire could trigger a strong relief rally, but cautioned that without credible de-escalation, markets are likely to remain defensive with more turbulent sessions ahead. Fed Chair Jerome Powell‘s scheduled public remarks were also flagged as a potential additional pressure point for markets.
Peter Chung, head of research at Presto Labs, agreed that the risk-off tone was the primary driver of outflows, though he noted the figure does not appear especially dramatic when viewed against recent trends. He attributed the move in part to fading expectations for a ceasefire as peace talks faltered toward the end of the week. Chung’s assessment aligns with a broader view that the outflows reflect shifting sentiment rather than a structural change in Bitcoin ETF demand.
Pratik Kala, head of research at Apollo Crypto, attributed the outflows to risk-off sentiment combined with end-of-quarter portfolio rebalancing, describing the $290 million figure as quite normal. He emphasized that Bitcoin’s relative strength compared to other asset classes remains notable and supportive of a longer-term constructive view. Kala also cautioned against drawing structural conclusions from weekly flow data, noting that ETF activity includes significant basis trading by hedge funds rather than purely directional bets.
Despite the turbulence, Gilbert noted that Bitcoin has held up relatively well through the period of conflict and has been a surprising standout given its status as a risk asset. However, he warned that ongoing tensions demonstrate Bitcoin is not immune to indiscriminate selling across markets. According to CoinGecko data, Bitcoin was trading at $67,574, up 1.4% over the prior 24 hours, after dipping into the $65,000 range earlier in the week.
Originally reported by Decrypt.
