Bitcoin ETFs lose $635M in a single day on oil-driven sell-off
Investors pull over $600M out of bitcoin funds
U.S. investors withdrew more than $635 million from spot bitcoin exchange-traded funds (ETFs) on Thursday. ETFs are funds that track the live price of an asset, letting investors own a piece of bitcoin without buying the digital coin itself. This sharp sell-off marked a quick reversal for the week, when these funds had been receiving money from buyers.
According to data from Farside Investors, $635.6 million left the funds on Thursday, putting downward pressure on the price of bitcoin. The coin fell below $81,000 at one point before rebounding to trade near $81,669, down just 1% over a 24-hour period.
BlackRock and Fidelity see the largest outflows
- BlackRock’s iShares Bitcoin Trust saw the biggest drop, with more than $254 million leaving the fund.
- Fidelity’s Wise Origin Bitcoin Fund lost about $218 million.
- Over $109 million flowed out of the ARK 21Shares Bitcoin ETF.
- Morgan Stanley’s fund and Bitwise’s ETF lost nearly $30 million and over $27 million, respectively.
Despite the sudden Thursday sell-off, these investment vehicles had still received a net positive amount of more than $439 million earlier in the week.
How oil prices and geopolitical risk triggered the drop
The shift toward a “risk-off” mood on the markets followed escalating tensions in the Middle East. Brent crude oil hit a five-month high after Yemeni rebels, known as the Houthis, attacked Saudi Arabia on Thursday. Investors fear this could disrupt energy supplies even further.
High oil prices can pressure bitcoin and other digital assets because they often lead to increased inflation, which makes it more likely the U.S. central bank will raise interest rates. Bitcoin has traditionally performed better in an environment of lower interest rates. On the same day, investors also sold off tech stocks that had seen strong earnings earlier in the week.
What analysts are saying about the market's current state
Despite the volatility, some analysts believe bitcoin is entering a new bull market. Data from last month showed the leading cryptocurrency crossed above its 365-day moving average, which is a common indicator that a market may be emerging from a long downward trend. This followed a strong recovery for the coin in August and September, which included its best quarter in years.
The context for 2026 is that bitcoin had previously set a record of $126,080 in October 2025 before falling sharply when a major trading event wiped out more than $19 billion in open positions.
News sources and references
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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