Bitcoin ETF Products See Heavy Outflows Ahead of Trump Tariffs

Bitcoin (BTC) exchange-traded funds (ETFs) recorded heavy outflows this week, losing $218 million across two trading days, according to Farside Investors.

YEREVAN (CoinChapter) – Bitcoin ETF products experienced significant outflows this week, losing $218 million across two trading days, according to data from Farside Investors.

The largest withdrawals occurred on Tuesday, with $157.8 million exiting Bitcoin ETF products. On Monday, the outflows totaled $60.6 million. Among the biggest contributors to the outflows were Bitwise (BITB), Ark Invest (ARKB), and WisdomTree (BTCW). The only institution that saw positive Bitcoin ETF flows was BlackRock, with its IBIT ETF.

As of April 1, BlackRock’s IBIT had no inflows or outflows, indicating that investors might be pausing their activity. This movement coincided with anticipation for new Trump tariffs later in the week.

Furthermore, Ethereum ETF products also saw limited interest, with $3.6 million in net outflows reported by Farside for April 1. This shift aligned with a broader reduction in risk appetite from institutional investors.

“The Spot Bitcoin ETFs saw $157.8 million outflow yesterday. The Spot Ethereum ETFs saw a $3.6 million outflow. Institutions are reducing risk ahead of today’s tariff announcement,” said analyst Crypto Rover.

These figures highlight the cautious behavior of larger investors as they anticipate potential market volatility linked to the new Trump tariffs.

The drop in Bitcoin ETF flows came ahead of a potential trade policy shift. On April 2, President Donald Trump is expected to announce sweeping tariffs on key imports, such as textiles, paper, and some food items from China, according to De Tijd.

However, Bloomberg reported that the White House had yet to finalize its decision, citing unnamed sources familiar with the discussions. The delay has created uncertainty in financial markets, including cryptocurrencies.

“April 2nd is similar to election night. It is the biggest event of the year by an order of magnitude. 10x more important than any FOMC,” noted economic analyst Alex Krüger.

This uncertainty has influenced institutional behavior in Bitcoin ETF and Ethereum ETF products.

In the current economic climate, many institutional investors are turning towards traditional assets over crypto. A Bank of America survey of 58% of fund managers showed that they prefer gold safe haven strategies during trade war conditions. In contrast, only 3% supported Bitcoin as a risk-off hedge.

Concerns around Bitcoin ETF risk include its high volatility and low liquidity during market stress, limiting its broader acceptance as a safe haven.

In contrast, gold has historically drawn capital during macroeconomic turbulence, such as the 1930s depression or the 1998 Russian default, reinforcing its current popularity.