Bitcoin ETFs See $453.5M Outflows Amid US-China Trade Tensions
1min read Spot Bitcoin ETFs experienced substantial outflows on April 8 and 9, with $326.3 million and $127.2 million withdrawn, respectively. These movements followed a $103 million outflow on April 7. On April 8, BlackRock’s IBIT recorded the largest outflow, losing $252.9 million. Bitwise’s BITB and ARK’s ARKB followed, shedding $21.7 million and $19.9 million, respectively. Outflows continued on April 9, led by IBIT with another $89.7 million in redemptions and Grayscale’s BTC product with $33.8 million. The only ETF to see inflows these two days was BITB, which added $6.7 million, showing some isolated demand despite the broader market downturn.
The increasing withdrawals from spot Bitcoin ETFs are the market’s answer to the escalating trade tensions between the US and China. On April 2, President Donald Trump imposed a reciprocal tariff on Chinese imports, effective April 9, raising the total tariff to 104%. In retaliation, China announced a 34% tariff on US goods, effective April 10. These actions have heightened fears of a trade war, leading to volatility across financial markets. The S&P 500 and Nasdaq Composite have declined over 15% and nearly 21% year-to-date, respectively.
Bitcoin has not been immune to these developments. Its drawdown widened to 27%, nearing levels observed during the FTX collapse, reflecting the broader market’s risk-off sentiment. The market's reaction to the trade war has led to significant outflows from spot Bitcoin ETFs, as investors seek to mitigate risks associated with heightened geopolitical tensions. The outflows indicate a shift in investor sentiment, with many opting to exit their positions in Bitcoin ETFs amid the uncertainty caused by the trade war. The situation underscores the interconnectedness of global financial markets and the impact of geopolitical events on investor behavior.
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