On Tuesday, investors pulled $326 million from Bitcoin exchange-traded funds (ETFs), marking the largest one-day drop since March 11, according to Farside. This came amid rising concerns over the trade war between the U.S. and its global trading partners, especially China.
The pullback happened just as President Donald Trump’s new tariffs were about to kick in at midnight, creating uncertainty for investors.
BlackRock’s Bitcoin ETF suffered the most, losing $253 million of the total, making it the third biggest one-day decline recorded since it launched.
Analyst Valentin Fournier noted that the outflows are a clear indication of a “large-scale de-risking by institutions.” He explained that the reduced trading volume showed how investors were shifting to safer positions amid global tensions.
Meanwhile, the entire crypto market appeared to be crumbling under pressure. Yesterday, Bitcoin’s price dipped to $75,100, a level not seen since October of last year.
However, today Trump has announced a 90 day pause on the tariffs, which in turn is shifting the market to a positive end.
According to data from CoinMarketCap, the cryptocurrency fell 5% over the last 7 days. Right now, it is trading for $82,332, after a little push of 6% recorded only in the last 24 hours, with the same percentage increase in the market cap. It started from an intraday low of $74,354, and it is steadily recovering.
Ethereum also saw outflows on Tuesday, with $3.3 million leaving Ethereum ETFs. The largest pullback was seen in Fidelity’s Ethereum fund.
Although these outflows were less than the ones related to Bitcoin ETFs, they still demonstrated a sustained off-risk sentiment across the crypto space.
Meanwhile, Teucrium launched a new 2x Long Daily XRP ETF recently. It is a leveraged product tied to XRP. The launch generated $5 million in trading volume. XRP is the native cryptocurrency of the Ripple network, and its ETF aims to offer more exposure to the digital asset.
The outflows from the ETFs on XRP were drastic and coincided with the rise in economic uncertainty. The imposing tariffs on over 180 countries worth over $5 trillion have ignited further strife in the U.S.-China trade relations. Some investors do consider that this pain threshold could provide better entry points down the road.
Also Read: Amid Trump Tariff War, China And Russia Turn To Bitcoin
