Daniel Walker
On Tuesday, U.S. spot bitcoin exchange-traded funds (ETFs) experienced significant outflows, with a total of $326.27 million exiting these products. This marked the largest daily net outflow since March 11, as investors reacted to the full implementation of President Trump’s new tariffs at midnight Wednesday.
Rick Maeda, a research analyst at Presto Research, pointed out that the major outflow was driven by a renewed risk aversion in the markets. Maeda explained that the tariff headlines were likely adding to the pressure on riskier assets like bitcoin. “ETF flows are likely to remain volatile, and history shows that investors often sell indiscriminately during risk-off periods, regardless of the narrative,” he told PRIME.
BlackRock IBIT Leads Outflows, Followed by Other Major Funds
The largest outflow on Tuesday came from BlackRock’s IBIT, which saw $252.9 million leave the fund, according to SoSoValue data. Other bitcoin ETFs also experienced notable outflows, with Bitwise’s BITB recording $21.7 million in outflows, Ark and 21Shares’ ARKB losing $19.9 million, and Grayscale’s GBTC and Grayscale Bitcoin Mini Trust also reporting losses. Franklin’s EZBC and Invesco’s BTCO were also affected by outflows.
Bitcoin ETF Flows Extend Negative Streak
Tuesday’s outflows marked the fourth consecutive day of negative flows for spot Bitcoin ETFs, following $109.2 million in net outflows on Monday. The total trading volume for these ETFs was $3 billion on Tuesday, a significant drop from the $6.6 billion recorded on Monday and $4.4 billion on Friday.
Global Market Reactions to U.S. Tariffs
The fallout from President Trump’s tariffs, including a 104% tariff on Chinese imports, continues to impact global markets. Asian stock markets had a mixed performance on Wednesday, with Japan’s Nikkei 225 falling by 3.9%, while the Shanghai Composite rose by 1.3%, and South Korea’s Kospi dropped 1.4%. Major U.S. stock indexes also closed lower on Tuesday, with the Dow Jones Industrial Average losing 0.84%, the S&P 500 dropping 1.57%, and the Nasdaq Composite falling 2.15%.
Short-Term Effects of Tariffs on Risk Assets
Maeda of Presto Research observed that disruptions in the global trade system, like the new tariffs, generally have a negative short-term impact on risk assets as investors reassess the landscape. However, he also mentioned that the anticipated risks often affect markets more than the actual events, meaning the implementation of tariffs, despite its initial concern, could eventually bring clarity and help stabilize risk sentiment.
Bitcoin and Ether Market Performance
At the time of writing, bitcoin had fallen by 2.6% in the last 24 hours to $77,465, giving up gains from a brief rally above $80,000 earlier on Tuesday. This drop came after a significant sell-off earlier in the week. Meanwhile, spot ether ETFs recorded $3.29 million in net outflows on Tuesday after no flows on Monday.
