Bitcoin ETFs See $635.6M Outflows as Oil Prices Spike
US spot Bitcoin ETFs recorded $635.6 million in outflows on Thursday, according to Farside Investors, as rising oil prices renewed risk-off sentiment. BlackRock’s iShares Bitcoin Trust saw the largest withdrawals at more than $254 million, followed by Fidelity’s fund at nearly $218 million. Bitcoin briefly fell below $81,000 and was later trading near $81,669, down about 1% over 24 hours.
The withdrawals came after tensions in the Middle East pushed Brent crude to a five-month high, raising concerns about energy supply disruptions and the potential for higher interest rates. Higher rates can weigh on Bitcoin and other risk assets by tightening liquidity. Despite Thursday’s outflows, spot Bitcoin ETFs had attracted more than $439 million in net investment over the week.
Bitcoin has rebounded in recent months after trading well below its October 2025 record of $126,080. The latest ETF outflows point to renewed short-term caution, although the broader weekly inflow remained positive.
Bearish
The news is short-term bearish for Bitcoin because substantial spot ETF redemptions coincided with a drop below $81,000 and a broader move away from risk assets. Rising oil prices and Middle East tensions can increase inflation concerns and the likelihood of tighter monetary policy. If traders expect higher rates, liquidity-sensitive assets such as Bitcoin may face selling pressure. ETF flows and the oil-market reaction are therefore important near-term indicators.
Similar risk-off episodes have often pressured Bitcoin alongside technology shares, although the response can be temporary if geopolitical concerns ease or oil prices retreat. The weekly net inflow of more than $439 million provides a counterpoint: Thursday’s withdrawals do not, by themselves, establish a sustained reversal in institutional demand. In the short term, continued outflows and price weakness could amplify volatility and prompt traders to reduce leverage. Over the longer term, the market’s direction will depend more on persistent ETF flow trends, monetary policy, liquidity and whether Bitcoin can maintain its recovery. The bearish assessment is therefore focused on immediate risk sentiment rather than a confirmed long-term trend change.