Oil surge triggers $635M outflow from bitcoin ETFs

U.S. investors shifted sentiment sharply on Thursday, withdrawing more than half a billion dollars from spot bitcoin exchange-traded funds as a risk-off stance returned.

Data from Farside Investors shows total outflows of $635.6 million from the funds on Thursday. The redemptions added selling pressure on bitcoin, pushing its price temporarily below $81,000.

The cryptocurrency has since recovered and was recently trading near $81,669, a decline of just 1% over the past 24 hours.

BlackRock’s iShares Bitcoin Trust saw the largest withdrawals, with investors redeeming over $254 million. Fidelity’s Wise Origin Bitcoin Fund followed, losing about $218 million.

The ARK 21Shares Bitcoin ETF saw over $109 million exit; Morgan Stanley’s fund and Bitwise’s ETF recorded losses of nearly $30 million and over $27 million, respectively.

However, the investment vehicles have still posted net positive inflows of over $439 million for the week.

Investors moved into risk-off mode after flare-ups in the Middle East drove oil prices higher. Brent crude reached its highest level in five months following an attack by Yemen’s Houthi rebels on Saudi Arabia on Thursday, raising fears of further energy supply disruptions.

Bitcoin’s price has been volatile this year since the U.S. and Israel struck Iran, halting oil shipments as ships face difficulties transiting the strategic Strait of Hormuz, through which a fifth of the world’s oil flows.

A higher oil price can weigh on bitcoin and other risk-on assets because it raises the likelihood of the U.S. Federal Reserve increasing interest rates.

Bitcoin has historically performed well in low-interest-rate environments, as such conditions provide more liquidity for the asset to gain.

On Thursday, investors also sold off technology stocks, which had rallied earlier in the week following SpaceX’s strong earnings report.

Analysts suggest bitcoin is entering a bull market once more. Data released last month indicated that the leading cryptocurrency has crossed above its 365-day moving average—a typical signal that a bear market has ended—after a strong August rally.

Bitcoin reached an all-time high of $126,080 in October 2025 but began declining later that month after the largest liquidation event in crypto history forced the closure of over $19 billion in positions.

The cryptocurrency traded well below that level throughout the first half of 2026, but regained momentum in August and September, posting its best quarter in years.