Bitcoin ETFs Bleed $100M as Trump’s Tariffs Shock Markets

Bitcoin ETFs just took a major hit. On Thursday, U.S. spot Bitcoin ETFs saw $99.86 million in net outflows as the stock market tumbled following President Trump’s tariff announcement. Grayscale’s GBTC took the biggest hit, losing $60.2 million, while Bitwise’s BITB and Fidelity’s FBTC saw outflows of $44.19 million and $23.27 million, respectively.

Other ETFs, including Ark’s ARKB, VanEck’s HODL, and WisdomTree’s BTCW, also faced significant withdrawals.

Despite the market downturn, BlackRock’s IBIT—the largest Bitcoin ETF—was the only fund to attract inflows, gaining $65.25 million. This suggests that some investors still see Bitcoin as a reliable asset despite the broader uncertainty.

Tariff Announcement Triggers Market Chaos

Thursday’s $99.86 million in outflows reversed the previous day’s $220.76 million inflow. The selloff followed President Trump’s announcement of a 10% tariff on imports, with some countries facing levies of over 50%. This policy shift shook investor confidence, leading to sharp market declines.

U.S. stocks plunged in response, with the Nasdaq dropping 6%, the S&P 500 falling 4.8%, and the Dow slipping 3.9%. The crypto market wasn’t spared—Bitcoin fell more than 6%. Spot Ether ETFs also saw $3.59 million in outflows on Thursday, adding to a three-day losing streak after shedding $51.24 million the previous day.

Bitcoin Faces Uncertainty as Volatility Rises

The crypto market is at a turning point, influenced by economic uncertainty and shifting investor sentiment. Bitcoin is currently trading at $84,472, up over 1% in the past 24 hours. However, analysts note that its drop from Thursday’s peak of $88,500 reflects growing caution among investors after Trump’s tariff decision.

Large withdrawals from Bitcoin ETFs indicate a reduced risk appetite, with investors becoming more cautious. Experts believe a major economic event may be needed to spark a strong market recovery.

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Regulatory Developments and Market Volatility Ahead

At the same time, rising Implied Volatility (IV) suggests that traders expect bigger price swings. With key economic events approaching, this could create opportunities for those betting on price movements.

Meanwhile, Alankar Saxena, Co-founder and CTO of Mudrex, pointed out that regulatory changes, such as the STABLE Act promoting stablecoin transparency and the Senate Banking Committee’s support for Paul Atkins’ nomination, are helping create a more crypto-friendly environment in the U.S.

Money never sleeps, and neither does Bitcoin. But right now, investors seem to be keeping one eye open for the next big shake-up.