Bitcoin ETF saw a single-day outflow of $171 million, the highest in three weeks; the situation in the Middle East has become a key variable for institutional positioning

Gate News, as tensions in the Middle East continue to escalate, the U.S. spot Bitcoin ETF market has seen clear outflows of funds. Data shows that on Thursday, the single-day net outflow reached $171 million, the largest scale of redemptions since March 3, when outflows had been as high as $348 million, and market risk-off sentiment warmed.

Looking at the specific distribution of capital, several major ETFs have all seen divestment. Among them, BlackRock’s IBIT recorded outflows of about $41 million, Fidelity’s FBTC outflows were $32 million, while ARKB and GBTC saw outflows of $30.5 million and $24 million respectively, indicating that institutional capital has turned more cautious in the short term. At the same time, the price of Bitcoin fell below the $70,000 level; over the past week, the cumulative decline was 4.7%, and it is currently trading around $67,000 in a tight range.

Although pressure remains on the short term, liquidity conditions are not completely weakening. According to Sosovalue data, from March 2026 to date, Bitcoin ETFs have still recorded about $1.36 billion in net inflows, with the potential to end the prior stretch of consecutive months of outflows. Bloomberg analyst Eric Balchunas noted that with just one strong trading day, ETF capital flows could turn positive again, and emphasized that against the backdrop of the current products still being down roughly 46% from Bitcoin’s all-time high, they remain stable, showing strong capacity to absorb demand.

The core variable behind market volatility still comes from geopolitics. Earlier, there were reports that the U.S. is deploying more military forces to the Middle East, raising investors’ concerns about escalation of the conflict. Even though Trump announced that a ceasefire period targeting Iran’s energy facilities would be extended to April 6, the market remains alert to potential risks over the weekend.

Analyst Kyle Rodda said that amid a backdrop where negotiations’ uncertainty and military actions coexist, investors tend to reduce their risk exposure, which directly affects the short-term capital flows of Bitcoin ETFs. Similar scenarios have seen abrupt escalation cases before, making the market highly sensitive to any developments.

Currently, Bitcoin ETF capital movements are linked with macro risk sentiment, and the near-term trend will still depend on changes in the Middle East situation and whether institutional capital returns.