In a dramatic shift in investor sentiment, outflows from spot Bitcoin ETFs in the United States surged last week to unprecedented levels. Reports indicate that a combination of escalating trade tensions and aggressive tariff plans introduced by President Trump has significantly impacted the cryptocurrency market.
According to recent data, the 12 spot Bitcoin ETFs experienced withdrawals amounting to $713.3 million, a staggering 300% increase compared to the previous week’s outflows of $172.7 million. This underlines a growing unrest among investors fearful of the potential fallout from the ongoing US-China trade war.
From April 7 to April 11, investors consistently pulled money from these ETFs, resulting in daily outflows that reached a peak of $326.27 million on Tuesday alone. By the week’s end, the total outflows showed little sign of abating, culminating with just over $1 million exiting on Friday. Notably, BlackRock’s IBIT ETF bore the brunt of the withdrawals, suffering $342.6 million in outflows, closely followed by Grayscale’s GBTC with $160.9 million.
In stark contrast, Grayscale’s mini Bitcoin Trust managed to garner $2.4 million in net inflows, indicating a small but significant interest amidst the overall bearish trend. Furthermore, Ethereum ETFs reported significant outflows as well, with withdrawals climbing a shocking 65% to $82.47 million last week. This marks the seventh consecutive week of Ethereum ETF withdrawals, highlighting a growing aversion to riskier assets during these turbulent times.
The underpinning factor fueling these significant shifts appears to be the uncertainty surrounding Trump’s newly proposed tariff plans. Originally intended to be a 10% flat tariff on all imports starting in April, the situation escalated as tariffs on Chinese goods spiked as high as 145% due to accusations of unfair trade practices. As a countermeasure, China implemented tariffs up to 125% on American goods and ceased exports of rare-earth minerals, effectively heightening fears of a full-blown trade war.
This climate of uncertainty has left investors jittery, particularly regarding exposure to risk-laden assets like Bitcoin. At the time of reporting, the crypto market overall was down by approximately 2.1% in a day, despite Bitcoin’s price bouncing back from a low of $74,773 to nearly $84,500 on April 14.
Despite the negative sentiment, some analysts remain optimistic about Bitcoin’s immediate future. They suggest that Bitcoin is on the verge of breaking out of a long-standing downtrend, with critical price movements anticipated that could initiate a new uptrend phase.
As the market continues to respond to geopolitical developments, staying informed on these fluctuations is vital for investors interested in cryptocurrencies. The ongoing volatility reflects not just market trends but the broader economic landscape affected by global politics.
