U.S. spot bitcoin ETFs shed $635.6 million on Thursday as oil prices climbed on Middle East tensions. Bitcoin dipped under $81,000 before recovering, while the funds still hold net inflows for the week.
U.S. investors reversed course on Thursday, and $635.6 million left spot bitcoin ETFs, data from Farside Investors shows. The redemptions put downward pressure on bitcoin, which dropped under $81,000 at one point.
The coin has since rebounded and was recently trading for nearly $81,669, down just 1% over a 24-hour period.
Which funds saw the biggest outflows
BlackRock's iShares Bitcoin Trust saw the largest outflows, over $254 million. Fidelity's Wise Origin Bitcoin Fund followed, losing close to $218 million.
Over $109 million left the ARK 21Shares Bitcoin ETF, while Morgan Stanley's fund and Bitwise's ETF lost nearly $30 million and over $27 million, respectively. Even so, the funds received net positive investment of over $439 million this week.
Oil prices drive a risk-off move
Sentiment turned risk-off after flare ups in the Middle East sent oil higher. Brent crude hit its highest price in five months after the Houthis attacked Saudi Arabia on Thursday, sparking concerns over more disruption to energy supplies.
A higher oil price can hurt bitcoin and other "risk-on" assets because it increases the chances of the U.S. central bank raising interest rates, according to the report. Bitcoin has typically done well in a low interest rate environment, and investors also sold off tech stocks on Thursday.
Bitcoin's longer run
Analysts are saying bitcoin is entering a bull market again. Data last month showed bitcoin crossing above its 365-day moving average, a typical sign it is out of a bear market, following a strong run in August.
Bitcoin notched a record of $126,080 in October 2025 before sinking later that month, after a liquidation event saw over $19 billion in bets closed.
Source: Bitcoin Magazine
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