Last week, the U.S. experienced a notable increase in outflows from spot Bitcoin ETFs, a development attributed to a decline in investor sentiment amid escalating trade tensions linked to President Trump’s assertive tariff strategies.
Recent data from SoSoValue reveals that the 12 Bitcoin ETFs experienced a significant withdrawal of $713.3 million, marking an increase of over 300% compared to the previous week’s outflows of $172.7 million.
From April 7 to 11, there was a consistent trend of funds being withdrawn, extending a pattern initiated on April 3. On Tuesday, the market experienced its most significant decline, recording outflows of $326.27 million. In contrast, Friday concluded the week with a mere $1 million outflows.
BlackRock’s IBIT experienced significant outflows, totaling $342.6 million, making it the most affected. Grayscale’s GBTC followed with $160.9 million in outflows, while Fidelity’s FBTC recorded $74.6 million, according to Faside data. Several other ETFs, including BITB, BTCO, ARKB, EZBC, BTCW, and HODL, experienced outflows ranging between approximately $11 million and $38 million.
In a week marked by a prevailing bearish trend, Grayscale’s mini Bitcoin Trust emerged as the sole ETF to attract attention, securing $2.4 million in net inflows. In contrast, Valkyrie’s BRRR experienced a stagnant week with no recorded flows.
In a parallel development, Ethereum ETFs experienced a decline similar to that of Bitcoin ETFs, as outflows surged by 65%, reaching $82.47 million in the past week. Ethereum ETF withdrawals have reached their seventh consecutive week, accumulating over $877 million.
The ambiguity surrounding Trump’s proposed tariff initiatives lies at the heart of the situation. He initially declared a 10% uniform tariff on all imports set to commence in April, with even steeper rates imposed on key trading partners.
On April 9, markets experienced a slight downturn as the decision was made to pause tariff increases for 75 allied nations. The sense of relief was fleeting. The United States subsequently increased tariffs on certain Chinese goods, reaching levels as high as 145%, while accusing China of unfair trade practices.
In a decisive move, China retaliated by imposing tariffs as high as 125% on American products and halted the export of rare-earth minerals. The escalation of tensions has heightened concerns over a potential trade war, leaving investors wary of engaging with riskier assets such as Bitcoin.
As of this writing, the cryptocurrency market has declined approximately 2.1% over the last 24 hours. In a notable recovery, Bitcoin has surged from a low of $74,773 last week to nearly $84,500 by Monday, April 14.
Some analysts suggest that Bitcoin’s value is fluctuating. Bitcoin appears poised to emerge from its prolonged downtrend. Analysts observe that the price is mere hours from executing a pivotal shift that may initiate a new uptrend phase.