Bitcoin ETFs face large outflows as geopolitical risks rise

The outflows coincided with a $4,000 drop in Bitcoin prices due to missile strikes in the Middle East.

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Rising geopolitical tensions have led to a significant outflow of funds from US Bitcoin ETFs, with institutional investors withdrawing almost $243 million from these financial products. This marks the largest single-day outflow in nearly a month and follows eight consecutive days of positive inflows.

Fidelity’s Wise Origin Bitcoin Fund experienced the largest withdrawal, losing $144.7 million, followed by ARK’s 21Shares Bitcoin ETF, which saw $84.3 million in outflows. Several other ETFs also suffered notable losses, though BlackRock’s iShares Bitcoin Trust managed to record $40.8 million in inflows, marking its 15th consecutive positive day.

The outflow coincided with a sharp decline in Bitcoin prices, which fell by nearly $4,000 following missile strikes in the Middle East. Ethereum ETFs also witnessed significant outflows, with Grayscale and Fidelity products shedding substantial amounts.