US-listed spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) witnessed significant outflows on Wednesday as investors sought safety amid macroeconomic uncertainty caused by escalating trade tensions between the US and China.
Crypto Investors Pull Out of Bitcoin, Ethereum ETFs Amid Tariff Uncertainty
The withdrawals came as both Bitcoin and Ethereum prices rose amid a broader risk recovery on Wall Street after President Donald Trump announced a temporary pause on new tariffs for most countries except China.
$127 Million Withdrawn from Bitcoin ETFs in One Day
Data from Farside Investors shows that 11 U.S.-listed spot Bitcoin ETFs saw net outflows of $127.2 million on Wednesday. The largest among them, BlackRock’s iShares Bitcoin Trust (IBIT), saw the bulk of withdrawals with $89.7 million outflows from the fund.
This was the fifth day of outflows for Bitcoin ETFs, with a staggering $722 million withdrawn from the products in the past week.
Ethereum ETFs also suffered, with nine funds recording a total outflow of $11.2 million in the same period.
Why Are Investors Selling?
The latest sell-off appears to be driven by broader market uncertainty stemming from ongoing US-China trade tensions.
Trump's previous tariff hikes, specifically targeting China, have triggered volatility in global markets, including the bond market.
Analysts suggest that risk-averse macro investors are liquidating assets, including crypto ETFs, to raise cash amid uncertainty.
Despite the ETF outflows, crypto prices staged a strong rally on Wednesday after Trump announced a 90-day pause on new tariffs for more than 75 countries that do not retaliate against the U.S.
However, China was notably excluded from this relief. Instead, the US president increased tariffs on imports from China to a whopping 125%, further deepening the trade impasse between the world's two largest economies.
*This is not investment advice.
