Partners of the two accused with name suppression greeted the news with tears, earlier telling the Herald they had been hopeful of seeing the men released last night.
It had been reported that yesterday's hearing was a bail hearing, when it fact it was only to hear the transfer application.
Judge James Weir initially indicated he would let 27 family members into the courtroom - the number of seats in the public gallery - but changed his mind while a loud protest continued outside.
About 500 supporters of Iti and the other suspects had earlier marched through the streets around the court, carrying Maori sovereignty flags and banners saying "Free Tame" and "1 law for all".
The marchers chanted "Tuhoe, Tuhoe" and "Tino Rangatiratanga" as streets were blocked to traffic. "Who are the terrorists?" they cried.
"Pirihimana [police]," they answered, as a large number of officers in uniform patrolled the roads.
Maori Party MP Te Ururoa Flavell was among the crowd and said it was disappointing the judge had closed the hearing because everyone was in the dark about the extent of the allegations against Iti and the others.
"This whole notion of terrorism has shaken the nation, and the Tuhoe nation will always be known as the terrorists now," he said.
Six police officers barred the entry to the courtroom during the hearing, which lasted two-and-a-half hours.
A partner of one of the suspects told the Herald she was sick with worry after not being able to see him since police raided their house last Monday. She said he had been taken into custody and moved to Waikeria prison, which she had not been able to visit.
"We've never been apart," she said. "We've always been together. I hope to see him today."
Her children, who were at the house when it was raided, said they still had memories of police bursting into their house. "They searched our whole house and the shed, everything we had," the woman's 8-year-old son said. "I was scared."
Ms Sykes told the crowd of about 200 supporters who remained at the end of the hearing that Iti wanted to keep his case in the Bay of Plenty.
The crowd applauded as she spoke, telling them Iti had lost five kilograms and was "fabulous looking".
She said he was grateful for the support of the marchers.
The tone of yesterday's hikoi differed from one held in Whakatane on Friday. Yesterday's marchers were louder and voiced their anger. A few also clashed with police and photographers. Bystanders also reported seeing them push aside a table of people collecting for the blind.