U.S. investors pulled over $635 million from spot bitcoin exchange-traded funds on Thursday as risk sentiment shifted. According to Farside Investors data, the redemptions exerted downward pressure on bitcoin, which fell below $81,000 before recovering to trade near $81,669, down approximately 1% over a 24-hour period.
BlackRock's iShares Bitcoin Trust experienced the largest outflows at over $254 million, followed by Fidelity's Wise Origin Bitcoin Fund with close to $218 million in redemptions. The ARK 21Shares Bitcoin ETF lost over $109 million, while Morgan Stanley's fund and Bitwise's ETF saw outflows of nearly $30 million and over $27 million respectively.
Despite Thursday's decline, bitcoin ETFs posted net positive inflows of over $439 million for the week.
The outflows coincided with a surge in oil prices following Middle East developments. Brent crude reached its highest price in five months after Houthi forces attacked Saudi Arabia, raising concerns about potential disruptions to global energy supplies. Higher oil prices increase the likelihood of interest rate increases, which typically pressures risk-on assets including bitcoin.
Bitcoin tends to perform better in low interest rate environments due to increased asset liquidity. The broader market also saw tech stock selloffs on Thursday despite earlier gains tied to SpaceX earnings.
Bitcoin's price has been volatile amid geopolitical tensions affecting oil supplies, particularly following attacks on Iran and concerns about shipping through the Strait of Hormuz, where approximately one-fifth of global oil passes.
Analysts have noted signs of a potential bull market phase, citing data showing bitcoin crossing above its 365-day moving average in recent weeks—a metric typically associated with recovery from bear market conditions.
