Iran’s conflict has kept escalating, inflation expectations are heating up, and investors’ risk appetite has abruptly reversed course. Last week, U.S. spot Bitcoin ETF net outflows nearly $300 million, ending a recent streak of net inflows. Global crypto funds also saw outflows of $414 million, ending four consecutive weeks of net inflows.
According to SoSoValue data, for the week ending March 27, U.S. spot Bitcoin ETFs had net outflows of $296 million, reversing the prior weeks’ net inflow trend. The total net assets under management for ETFs also fell from the March 23 peak of $91.7 billion to $84.8 billion at Friday’s close, a decline of 7.5%.
Iran conflict and inflation expectations cool risk appetite
In a report released Monday, CoinShares research head James Butterfill said that global digital asset investment products saw net outflows of $414 million last week, the first time money has left the market in five weeks. He attributed this to investor worries about “tensions in the Iran-U.S. conflict remaining high” and “inflation outlook,” with market expectations for the June Federal Open Market Committee (FOMC) shifting from rate cuts to rate hikes.
The report shows that total assets under management for global crypto funds fell to $129.0 billion, returning to early February levels, roughly comparable to the size at the start of former U.S. President Trump’s April 2025 tariff policy.
The outflows were clearly regionally differentiated. The U.S. market was the main source of this sell-off, with outflows of $445 million in a single week. In contrast, funds in Germany and Canada recorded inflows of $21.2 million and $15.9 million, respectively, suggesting investors in those regions chose to step in and buy at lower levels. Switzerland saw a slight outflow of $4.0 million.
Ether funds were the hardest hit, while Bitcoin still maintained net inflows for the year
Among all asset categories, Ether investment products were hit the most severely. Globally, investors pulled out $222 million, and the net outflow since the start of the year expanded to $273 million, making it the weakest performer among major digital assets.
Bitcoin funds had global net outflows of $194 million last week, but still maintained net inflows of $964 million year-to-date. Products that short Bitcoin saw inflows of $4.0 million.
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