Bitcoin ETFs See Largest Daily Outflows Since Launch
Investors pulled approximately $326 million from U.S.-listed Bitcoin exchange-traded funds (ETFs) in a single day, marking the largest daily outflow since these products launched. The exodus comes as market volatility spikes following former President Donald Trump’s announcement of sweeping new trade tariffs, which have fueled economic uncertainty.
Grayscale Leads Outflows, But BlackRock Sees Inflows
The Grayscale Bitcoin Trust (GBTC) saw the largest individual withdrawal, with $74 million leaving the fund. Other prominent ETFs, including Ark Invest’s ARKB, Invesco’s BTCO, and Valkyrie’s HODL, also reported significant redemptions.
However, not all funds faced losses. BlackRock’s iShares Bitcoin Trust (IBIT) recorded a net inflow of $65.25 million, signaling that investor trust in certain fund managers remains strong even amid turbulence.
Broader Markets and Crypto React to Trade Tariffs
The financial markets have reacted swiftly to the tariff news. Major indices—Nasdaq, S&P 500, and Dow Jones—each suffered sharp declines as fears of a new trade war took hold. Bitcoin was not spared, dropping over 6% to roughly $83,220.
Ethereum also came under pressure. Its ETFs saw $3.59 million in outflows, following a massive $51.24 million pullback the day before. These movements underscore a broader trend of investors shifting away from digital assets as global risk factors intensify.
Tariff Fears Drive Risk-Off Sentiment
The announced tariffs include a blanket 10% duty on all imports, with some countries facing levies exceeding 50%. This has rekindled memories of the 2018 trade war and spurred concerns over global economic stability. In response, many investors are de-risking their portfolios, reducing exposure to more volatile assets like cryptocurrencies.
Despite the turbulence, some analysts remain bullish on Bitcoin’s long-term value. They argue that while macroeconomic events can shake prices in the short term, Bitcoin’s decentralized nature and potential as a financial hedge continue to make it appealing for the future.
