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U.S. spot Bitcoin ETFs recorded a net outflow of $127.12 million on Wednesday—even as crypto and traditional markets soared following former President Donald Trump’s announcement of a 90-day pause on most new tariffs.
BlackRock’s iShares Bitcoin Trust (IBIT) led the outflows, shedding $89.71 million, while Grayscale’s GBTC followed with $33.8 million in redemptions, according to data from SoSoValue. VanEck and WisdomTree’s ETFs also recorded negative flows. The lone outlier was Bitwise’s BITB, which bucked the trend by bringing in $6.71 million.
The outflows marked the fifth consecutive day of negative flows for spot Bitcoin ETFs, a troubling signal for institutional demand despite strong bullish momentum across markets.
Trump’s announcement slashing most reciprocal tariffs to 10% and delaying new ones was seen as a strategic move to cool escalating trade tensions. However, he notably hiked tariffs on China to 125%, keeping geopolitical uncertainty in play.
Still, the markets responded positively. The Dow Jones surged 7.87%, the S&P 500 climbed 9.52%, and the Nasdaq exploded 12.16% higher—its biggest daily gain since January 2001. Crypto-related stocks followed suit, with Coinbase up 16.91% and Strategy (formerly MicroStrategy) closing 24.76% higher.
The crypto market mirrored the exuberance: Bitcoin traded up 7.16% to $82,115, and Ethereum jumped 11.08% to $1,617 at the time of writing. Asian equities also rallied in early Thursday trading, with Japan’s Nikkei 225 up 8.68% and South Korea’s Kospi climbing 6.07%.
Also Read: Bitcoin ETFs See $100M Outflows as Trump’s Tariff Announcement Shakes Markets
“The market is rallying in response to anticipation that most trading partners will negotiate trade deals with the U.S., avoiding a full-fledged trade war,” said Jeff Mei, COO at crypto exchange BTSE. Still, he cautioned that lingering U.S.-China tensions may keep risk appetite subdued.
Despite the price rally, ETF investors appear to be taking profits or staying on the sidelines, signaling lingering caution in a volatile macro environment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
