BlackRock’s Bitcoin ETF is the top 1% performer despite tariff chaos.

Despite the threat of Trump's tariffs has brought chaos and uncertainty into global markets, the price of Bitcoin has been relatively fine.

Nearly 1% of the best-performing investment this year shouldn't be affected by anything, especially not the threat of tariffs, which has brought chaos and uncertainty into global markets.

However, despite the threat of Trump’s tariffs, crypto has been relatively calm. Although it has fallen from its all-time high in January, its price shelf is still well above its performance before the November election.

According to one analyst, the ETFs may be providing Bitcoin with this extra stability:

Bitcoin ETFs have eked out positive inflows past month and YTD and IBIT is +2.4 billion YTD (Top 1%). Impressivem and in my opinion, helps explain why BTC’s price has been relatively stable: its owners are more stable. ETF investors are much stronger hands than most think. This should increase stability and lower volatility and correlation long term

Since the Bitcoin ETFs first hit the market, they’ve totally transformed the crypto industry, but it’s been difficult to quantify that transformation.

However, this impending economic crisis has given analysts a useful chance to collect hard data from a stress test.

As the issuers applied for their ETFs earlier this year, they faced an apparent crisis in BTC supply.

According to Balchunas, US ETF issuers had a powerful demand for BTC, which has powered some changes. Over the last few months, they’ve been buying tremendous amounts of Bitcoin. Collectively, they surpassed Satoshi’s holdings in December and bought 20x as much BTC as the global mining output in January.

But who met this apparent crisis in supply? Retail investors.

Bitcoin is now more integrated than ever into traditional finance, presenting a few opportunities. For any number of reasons, these investors have been compelled to dump their tokens.

Normally, these actions could spook the markets, but ETF issuers (and Michael Saylor’s Strategy) have been willing to buy as much Bitcoin as possible.

In other words, these whales have done a lot to hold up confidence in the entire market. Ideally, ETF issuers will have a mostly positive impact on the sector, potentially curing Bitcoin’s infamous chronic volatility.

Unfortunately, this substantial change comes with serious practical drawbacks, even discounting fears of de-centralization. Since the ETFs transformed the market like this, Bitcoin has been more entangled than ever with broader macroeconomic trends.

These trends, however, could force these big whales to sell. Can we afford to tie Bitcoin’s fate to these actors?

The ETF issuers have a high confidence in Bitcoin, which has kept its price steady throughout the tariff chaos. If they lose that confidence for any reason, it could cause a powerful demand crisis.

This investment trend has been a tremendous benefit to the crypto industry, but it’s important to keep an eye on the potential risks involved.