- Bitcoin ETFs experienced $326 million in outflows as Trump’s tariffs took effect.
- BlackRock’s IBIT was the hardest hit, losing $253 million.
- Ethereum ETFs also saw outflows, contributing to its price struggles.
The cryptocurrency market felt the full force of Trump’s new tariffs on Tuesday, as US spot Bitcoin exchange-traded funds (ETFs) experienced a mass exodus of investors.
A staggering $326 million was pulled from these ETFs, marking the largest single-day outflow since March 11 and signaling a sharp shift in market sentiment, according to a report in CoinMarketCap.
The flight to safety comes as traders grapple with escalating tensions between the US and its trade partners in response to President Trump’s latest trade policies.
BlackRock’s IBIT, one of the leading Bitcoin ETFs, was particularly hard hit, suffering $253 million in outflows – its third-worst day since launch.
Four days of bleeding: Bitcoin ETFs extend losing streak
The $326 million withdrawal extends a concerning negative streak for Bitcoin ETFs, which have now experienced outflows for four consecutive days.
This sustained selling pressure has coincided with a drop in Bitcoin’s price, which tumbled to $75,100 on Tuesday, marking its lowest point in five months.
Analysts attribute these outflows to a combination of heightened risk aversion among investors and the broader market’s negative reaction to Trump’s sweeping tariffs.
Bitcoin ETFs weren’t the only assets feeling the pain. Ethereum’s spot ETFs also experienced outflows on Tuesday, with $3.3 million pulled from the funds, suggesting a broader pullback from the crypto market.
Fidelity’s Ethereum fund saw the largest decline, contributing to Ethereum’s overall struggles, and the price of Ethereum fell below $1,450.
Compared to Bitcoin, ETH has been consistently losing value in the past five years. The ETH/BTC ratio is now at its five-year low.
While Ethereum’s spot ETF may be hurting now, the ecosystem around ETH is showing growth.
In contrast to its ETF, Ethereum’s layer-2 networks, such as Arbitrum and Optimism, are showing impressive growth in activity and on-chain locked value, and its transaction fees are the lowest they have been since August 2024.
As Bitcoin and Ethereum grapple with market pressures, 21Shares announced the launch of a fully backed Dogecoin exchange-traded product (ETP) on Switzerland’s SIX Swiss Exchange.
The Dogecoin ETP, launched in partnership with the Dogecoin Foundation, marks a notable milestone for the meme-inspired cryptocurrency, signifying growing institutional acceptance.
The market is expected to remain highly volatile as the full implications of the tariff war continue to unfold.
Investors are closely monitoring developments, with both Bitcoin’s struggling performance and Ethereum’s ETF both taking center stage in this period of immense uncertainty.
