Key Takeaways
- • U.S. spot bitcoin ETFs saw $635.6 million in net outflows on Thursday, according to Farside Investors data, reversing recent inflows as risk-off sentiment returned.
- • BlackRock's iShares Bitcoin Trust led redemptions with over $254 million in outflows, followed by Fidelity's Wise Origin Bitcoin Fund at close to $218 million.
- • Bitcoin dipped below $81,000 intraday before recovering to roughly $81,669, down about 1% over 24 hours.
- • Oil price spike after Houthi attacks on Saudi Arabia, with Brent crude hitting a five-month high, drove the risk-off move and raised concerns about U.S. interest rate hikes.
- • Despite the outflows, the funds recorded net positive inflows of over $439 million earlier in the week, and analysts say bitcoin is re-entering a bull market.
Summary
U.S. investors pulled $635.6 million from spot bitcoin exchange-traded funds on Thursday, according to data from Farside Investors, as renewed risk-off sentiment took hold. The redemptions pressured bitcoin, which fell below $81,000 at one point before recovering to nearly $81,669, down roughly 1% over a 24-hour period.
The selling was led by BlackRock's iShares Bitcoin Trust, which shed more than $254 million, and Fidelity's Wise Origin Bitcoin Fund, which lost close to $218 million. The ARK 21Shares Bitcoin ETF saw over $109 million in outflows, while Morgan Stanley's fund and Bitwise's ETF lost nearly $30 million and over $27 million, respectively. Despite Thursday's withdrawals, the funds had received net positive investment of over $439 million earlier in the same week.
The trigger was a geopolitical escalation in the Middle East. Brent crude reached its highest level in five months after Yemen's Houthi rebels attacked Saudi Arabia on Thursday, raising concerns about further disruption to energy supplies. The article notes that bitcoin's price has been under pressure throughout 2026 since the U.S. and Israel attacked Iran, disrupting oil shipments through the Strait of Hormuz, through which roughly a fifth of the world's oil passes. Higher oil prices can weigh on risk-on assets such as bitcoin by raising the likelihood of U.S. Federal Reserve rate increases, whereas bitcoin has historically performed well in low-rate environments. Tech stocks also sold off on Thursday after a rally earlier in the week tied to SpaceX's earnings.
Analysts cited in the article view bitcoin as re-entering a bull market. Data published the previous month showed the cryptocurrency crossing above its 365-day moving average, a signal often associated with exit from a bear market, following a strong August. Bitcoin reached a record $126,080 in October 2025 before a liquidation event in which more than $19 billion in leveraged bets were closed pushed prices lower. It spent the first half of 2026 well below that peak but recovered in August and September, posting its best quarter in several years.
The selling was led by BlackRock's iShares Bitcoin Trust, which shed more than $254 million, and Fidelity's Wise Origin Bitcoin Fund, which lost close to $218 million. The ARK 21Shares Bitcoin ETF saw over $109 million in outflows, while Morgan Stanley's fund and Bitwise's ETF lost nearly $30 million and over $27 million, respectively. Despite Thursday's withdrawals, the funds had received net positive investment of over $439 million earlier in the same week.
The trigger was a geopolitical escalation in the Middle East. Brent crude reached its highest level in five months after Yemen's Houthi rebels attacked Saudi Arabia on Thursday, raising concerns about further disruption to energy supplies. The article notes that bitcoin's price has been under pressure throughout 2026 since the U.S. and Israel attacked Iran, disrupting oil shipments through the Strait of Hormuz, through which roughly a fifth of the world's oil passes. Higher oil prices can weigh on risk-on assets such as bitcoin by raising the likelihood of U.S. Federal Reserve rate increases, whereas bitcoin has historically performed well in low-rate environments. Tech stocks also sold off on Thursday after a rally earlier in the week tied to SpaceX's earnings.
Analysts cited in the article view bitcoin as re-entering a bull market. Data published the previous month showed the cryptocurrency crossing above its 365-day moving average, a signal often associated with exit from a bear market, following a strong August. Bitcoin reached a record $126,080 in October 2025 before a liquidation event in which more than $19 billion in leveraged bets were closed pushed prices lower. It spent the first half of 2026 well below that peak but recovered in August and September, posting its best quarter in several years.
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