Bitcoin ETFs Witness Massive Withdrawals Amid Trade Tensions
Last week, spot Bitcoin ETFs in the U.S. faced notable outflows as investor confidence waned due to escalating trade tensions. According to SoSoValue data, $713.3 million was withdrawn from 12 Bitcoin etfs, a 300% increase from the previous week’s $172.7 million.
From April 7 to 11, each day saw withdrawals, with Tuesday experiencing the largest outflow of $326.27 million. BlackRock’s IBIT suffered the most, losing $342.6 million,followed by grayscale’s GBTC with $160.9 million and Fidelity’s FBTC with $74.6 million.
However, not all ETFs faced withdrawals. Grayscale’s mini Bitcoin Trust saw $2.4 million in inflows, while Valkyrie’s BRRR remained unchanged. Ethereum ETFs also struggled, with outflows rising 65% to $82.47 million, marking the seventh consecutive week of withdrawals.
The primary cause of these withdrawals is the uncertainty surrounding President Trump’s tariff plans. Initially, he proposed a 10% tariff on all imports, later raising tariffs on Chinese goods to 145%. China retaliated with tariffs up to 125% on U.S. goods, fueling fears of a trade war and making investors wary of riskier assets like bitcoin.
Despite the market’s 2.1% drop, Bitcoin has shown resilience, bouncing from $74,773 to nearly $84,500. Analysts believe Bitcoin is poised for a breakout, potentially signaling the start of a new uptrend.
