Investors Pull $326 Million from Spot Bitcoin ETFs Amid Trade War Tensions

Investors Flee Bitcoin ETFs Amid Trade War Uncertainty

Investors pulled $326 million from spot Bitcoin ETFs on Tuesday, the largest single-day pullback since March 11, as tensions between the US and its trading partners escalated over President Donald Trump’s tariffs.

The outflows were led by BlackRock’s spot Bitcoin ETF, which lost $253 million, the fund’s third worst day on record. The pullback came as investors braced for Trump’s “reciprocal” tariffs to go into effect at midnight Eastern Time, which were poised to affect imports from over 180 countries.

Trade War Uncertainty Sends Investors Fleeing

Since Trump unveiled his sweeping levies a week ago, the US and China have gone tit-for-tat. After the White House confirmed that Chinese imports will be subject to 104% duties, Beijing responded by slapping American goods with new 50% levies, yielding a total tariff rate of 84%.

The outflows registered on Tuesday were a “clear signal of large-scale de-risking by institutions,” BRN analyst Valentin Fournier wrote in a Wednesday note. The decline in volume from the prior day showed institutions “switching to a more defensive positioning.”

Spot Bitcoin ETFs on Four-Day Losing Streak

Spot Bitcoin ETFs are currently on a four-day losing streak, with only one positive day so far this month. On April 2, when Trump made his “Liberation Day” announcement, spot Bitcoin ETFs took in $218 million.

The price of Bitcoin was recently changing hands around $77,600 on Wednesday, down 2.5% over the past 24 hours, according to crypto data provider CoinGecko. On Tuesday, the asset’s price fell as low as $75,100, nearing a five-month low on Monday.

Ethereum ETFs Also See Outflows

Investors meanwhile pulled $3.3 million from spot Ethereum ETFs on Tuesday, according to CoinGlass, with the outflows being led by Fidelity’s Ethereum fund.

New XRP ETF Debuts

Teucrium’s 2x Long Daily XRP ETF, the first leveraged XRP product in the US, also debuted on Tuesday. It generated $5 million in trading volume, Bloomberg ETF analyst Eric Balchunas said.

Conclusion

The trade war uncertainty has sent investors fleeing from spot Bitcoin ETFs, with the largest single-day pullback since March 11. The outflows were led by BlackRock’s spot Bitcoin ETF, which lost $253 million, the fund’s third worst day on record. The decline in volume from the prior day showed institutions “switching to a more defensive positioning.”

FAQs

Q: What was the largest single-day pullback from spot Bitcoin ETFs?

A: The largest single-day pullback from spot Bitcoin ETFs was $371 million on March 11.

Q: Which ETF lost the most money on Tuesday?

A: BlackRock’s spot Bitcoin ETF lost $253 million, the fund’s third worst day on record.

Q: What was the price of Bitcoin on Wednesday?

A: The price of Bitcoin was recently changing hands around $77,600 on Wednesday, down 2.5% over the past 24 hours.

Q: Which ETF debuted on Tuesday?

A: Teucrium’s 2x Long Daily XRP ETF, the first leveraged XRP product in the US, debuted on Tuesday.