Bitcoin ETFs Record Major Outflows as New Tariffs Begin
Spot bitcoin exchange-traded funds (ETFs) saw $326.27 million in outflows on Tuesday, marking the largest single-day withdrawal since March 11. The timing aligns with President Trump's new tariffs that went into effect at midnight Wednesday as reported by BTC Peers.
BlackRock's IBIT fund led the downturn with $252.9 million in outflows. Other funds also experienced significant withdrawals, with Bitwise's BITB losing $21.7 million and Ark and 21Shares' ARKB seeing $19.9 million exit. Grayscale's GBTC, Grayscale Bitcoin Mini Trust, Franklin's EZBC, and Invesco's BTCO also reported outflows.
The Tuesday withdrawals continued a negative trend, making it the fourth straight day of outflows following Monday's $109.2 million exodus. Trading volume for bitcoin ETFs reached $3 billion on Tuesday, showing a decrease from $6.6 billion on Monday and $4.4 billion last Friday.
Strategy, the largest publicly listed corporate holder of Bitcoin, showed caution by halting Bitcoin purchases for the week ending April 6. The company reported holding 528,185 Bitcoin at an average price of $67,458 per coin, with an unrealized loss of $5.91 billion for Q1 2025.
"The largest outflow since March 11 points to renewed macro-driven risk aversion, with tariff headlines potentially adding pressure on risk assets," said Rick Maeda, research analyst at Presto Research. He added that ETF flows will likely remain volatile as investors often sell broadly during risk-off periods.
Global markets showed varied responses to President Trump's reciprocal tariffs, which include a 104% levy on Chinese imports. Key Asian market movements on Wednesday included:
- Japan's Nikkei 225: down 3.9%
- Shanghai Composite: up 1.3%
- South Korea's Kospi: down 1.4%
U.S. markets closed lower on Tuesday, with the Dow Jones Industrial Average falling 0.84%, the S&P 500 dropping 1.57%, and the Nasdaq Composite declining 2.15%. Bitcoin's price fell 2.6% over 24 hours to $77,465, retreating from its brief rise above $80,000 on Tuesday. Spot ether ETFs also recorded $3.29 million in outflows on Tuesday.
