Bitcoin Magazine
Bitcoin ETFs Lose Over $635M In One Day Following Oil Price Spike
On Thursday, U.S. investors rapidly pivoted and pulled more than half a billion dollars out of spot bitcoin exchange-traded funds as a risk-off mood reemerged.
Figures from Farside Investors indicate that $635.6 million was withdrawn from the funds on Thursday. These redemptions dragged down bitcoin’s price, causing it to fall below $81,000 temporarily.
The cryptocurrency has since recovered and recently traded near $81,669, marking a decline of only 1% over the course of 24 hours.
BlackRock’s iShares Bitcoin Trust recorded the largest withdrawals, with investors pulling more than $254 million. This was followed by Fidelity’s Wise Origin Bitcoin Fund, which shed nearly $218 million.
The ARK 21Shares Bitcoin ETF experienced outflows exceeding $109 million, while Morgan Stanley’s fund and Bitwise’s ETF lost almost $30 million and over $27 million, respectively.
Despite this single-day drop, the investment vehicles still maintained a net positive inflow of over $439 million for the week.
Market participants shifted to a “risk-off” stance after Middle Eastern tensions drove oil prices upward. Brent crude reached a five-month peak following Thursday attacks on Saudi Arabia by the Houthi rebel group in Yemen, raising worries about further energy supply disruptions.
Bitcoin prices have faced turbulence this year ever since U.S. and Israel attacks on Iran interrupted oil supplies, as vessels struggled to navigate the crucial Strait of Hormuz—a waterway through which one-fifth of global oil travels.
Elevated oil prices can weigh on bitcoin and other risk-on assets because they heighten the probability that the U.S. central bank will increase interest rates.
Historically, bitcoin has performed well in low interest rate environments because such conditions provide greater liquidity to fuel market rallies.
Alongside crypto, investors offloaded technology stocks on Thursday, which had climbed earlier in the week following strong earnings reports from SpaceX.
According to analysts, bitcoin is moving back into a bull market. Data from last month revealed that the leading cryptocurrency moved above its 365-day moving average—a classic indicator of exiting a bear market—following a robust performance in August.
After hitting an all-time high of $126,080 in October 2025, bitcoin began to decline later that month in the wake of the largest crypto liquidation event in history, which wiped out over $19 billion in leveraged positions.
Although the digital asset spent the initial half of 2026 trading considerably lower, it gained momentum through August and September to secure its strongest quarter in years.
How much did spot bitcoin ETFs lose in a single day?
Spot bitcoin ETFs lost a total of $635.6 million on Thursday following an oil price spike.
Which ETF suffered the largest outflows?
BlackRock’s iShares Bitcoin Trust saw the biggest outflows, with investors cashing out over $254 million.
Why did investors shift to a risk-off mode?
Investors went into risk-off mode after flare-ups in the Middle East and an attack on Saudi Arabia by the Houthi rebel group drove oil prices to a five-month high.
How does a higher oil price affect bitcoin?
A higher oil price can negatively impact bitcoin because it increases the likelihood that the U.S. central bank will raise interest rates, reducing market liquidity.
