- U.S. Bitcoin ETFs saw $172M in outflows last week amid sharp market declines and rising trade tensions.
- Grayscale’s GBTC led ETF losses with $95.5M in outflows as Bitcoin dropped below $76,500.
- Ethereum ETFs posted $49.9M in outflows, marking six consecutive weeks of investor withdrawals.
The US spot Bitcoin exchange traded funds recorded $172.89 million in net outflows over the past week, bringing to an end a streak of net inflows that brought nearly $941 million of net inflows over the past two weeks. The shift came as the crypto market showed sharp declines and investor sentiment turned cautious amid renewed trade tensions.
The outflows took place over four of the five trading days between March 31 and April 4. The market-wide action coincided with a broader risk-off mood, fueled by the former President Donald Trump’s announcement of new tariffs on imports that rekindled fears of global trade disruptions.
Grayscale and WisdomTree Lead ETF Redemptions
According to data compiled by SoSoValue, Grayscale’s GBTC, recorded the largest outflows, suffering $95.5 million in redemptions. WisdomTree’s BTCW followed with $44.6 million in weekly outflows. Other spot Bitcoin ETFs including BlackRock’s IBIT, Bitwise’s BITB, ARK 21Shares’ ARKB and VanEck’s HODL also reported net redemptions of $35.5M, $24.1M, $22.2M, $4.9M respectively.
Wednesday, April 3, was the only day of the week that saw the ETFs generate $220.76 million in new investment. However, the strong midweek figure was trumped by net outflows on the other four days: $71.07 million on Monday, $157.64 million on Tuesday, $99.86 million on Thursday and $64.88 million on Friday.
Some funds managed to escape the trend. Grayscale’s spot Bitcoin Trust (not to be confused with GBTC), EZBC from Franklin Templeton and Fidelity collectively took in $61.8 million in inflows. No other ETFs noted a change in net asset movement and several others closed the week flat.
Ethereum ETFs Mark Six Straight Weeks of Outflows
The decline in investment was not limited to Bitcoin-related products. Last week, U.S.-listed Ethereum ETFs posted $49.93 million in net outflows, bringing the total over the past six weeks to more than $795 million in redemptions. This continued pullback suggests broader investor unease across digital asset markets, not isolated to Bitcoin alone.
The ETF outflows came as Bitcoin plunged 9.3% in one day to below the $76,500 level, a point that Arthur Hayes, co-founder at BitMEX, has identified as crucial to maintaining a bullish momentum. The wider crypto market dropped nearly 10% on the same day, which was one of the sharpest one day crashes in recent months.
Trump’s announcement of new tariffs dubbed ‘Liberation Day’ duties have escalated geopolitical concerns that lead to sudden loss of capital inflow. The proposed policy includes a blanket 10% tariff placed on all imports with higher rates directed at specific trading partners. This raised alarms over the possibility of another new global trade conflict, echoing events from previous years which had impacted investor confidence across risk assets.
Bitcoin also closed down the first quarter of 2025 with its worst performance since 2018, adding to the negativity of institutional and retail investors alike. In response to the increasing pressure, ETF flows which have acted as a gauge for institutional interest in digital assets appear to be reversing.
