Bitcoin spot exchange-traded funds (ETFs) faced significant outflows, totaling $326 million on April 8, marking a fourth consecutive day of redemptions. This trend highlights a waning appetite among investors, driven by a host of macroeconomic uncertainties and escalating geopolitical tensions.
Data from SoSoValue indicates that BlackRock’s iShares Bitcoin Trust (IBIT) experienced the largest drop, with net outflows estimated at approximately $252.9 million. Additional declines were noted in other funds: Grayscale’s GBTC registered an $8.5 million outflow, Ark’s ARKB saw nearly $20 million withdrawn, and Bitwise’s BITB recorded a loss of $21.7 million.
Cautious Sentiment Hits Bitcoin ETFs as Crypto Markets Reel From Tariff Tensions
Throughout the day, none of the top 10 Bitcoin spot ETFs experienced net inflows. Fidelity’s FBTC and VanEck’s HODL, among other funds, remained stagnant, reflecting a broader sentiment of caution among investors. Ethereum spot ETFs were similarly affected, as all nine funds collectively faced a total outflow of $3.29 million, with no new inflows reported.
The downturn in ETF flows aligns with sharp depreciation in both Bitcoin and Ether during early trading hours in Asia. Bitcoin saw a decrease of 5.6%, dropping to $75,523, while Ether fell 10.7% to $1,417. This decline comes amid growing fears surrounding a protracted US-China trade conflict, especially as investors anticipate new tariffs introduced by President Donald Trump, with a resolution appearing increasingly unlikely.
4/8 BlackRock Bitcoin ETF $IBIT net flow: -3,296 Bitcoin ($-253.18 million) (3rd Highest Outflow Since Launch)Volume traded: $2.1 billion https://t.co/GX5GSqw4ZL pic.twitter.com/fdI1R1aGUY
— Trader T (@thepfund) April 9, 2025
The broader cryptocurrency markets also reflected these pressures, with a total market valuation decline of about 7%, bringing it down to $2.4 trillion over the past 24 hours. Alternative cryptocurrencies provided minimal relief, with only minor gains observed, failing to counterbalance the overall downturn.
Crypto Markets Mirror Wall Street as Risk Appetite Fades
Market analysts suggest that the outflows from ETFs are indicative of a larger risk-averse climate affecting both the cryptocurrency and equity markets.
“This indicates that the crypto market is not operating in a vacuum. It is influenced by traditional financial markets, particularly in times of heightened anxiety,” explained James Toledano, chief operating officer at Unity Wallet.
The data related to ETF flows implies that institutional interest in cryptocurrencies, which had surged following the approval of spot Bitcoin ETFs in the US earlier this year, appears to be declining as various macroeconomic and political challenges loom on the horizon.
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