TL;DR

Bitcoin ETFs witnessed $150M in outflows on a single day, marking the sixth consecutive day of redemptions amid mounting macroeconomic worries.
Nearly $800M of cumulative withdrawals over six trading sessions underscore a mass shift towards safe-haven assets like gold and government bonds.
A recent dip in Bitcoin’s price has compounded investor concerns, deepening the pivot away from crypto in favor of traditional investments.

Bitcoin ETFs have extended their losing streak, with another $150 million exiting the products in a single day. This marks the sixth consecutive day of outflows, reflecting growing investor caution as macroeconomic tensions and fears of inflation loom. Analysts attribute the trend to shifting strategies as traders pivot toward traditional safe-haven assets like gold and government bonds.  

The sustained withdrawals come amid heightened global trade uncertainties, particularly around potential tariff hikes between major economies. Investors appear wary of volatility in crypto markets, opting instead for stability as geopolitical risks threaten to disrupt financial markets.  

Cumulative Outflows Near $800M in Six Days

Over the past six trading sessions, spot Bitcoin ETFs have hemorrhaged approximately $772 million, signaling one of the longest outflow streaks since their launch earlier this year. Major funds, including those managed by prominent financial institutions, have seen consistent redemptions.

Grayscale’s Bitcoin Trust (GBTC), which has historically dominated the market, led the decline with significant daily withdrawals. Market observers note that Bitcoin’s price struggles have compounded the issue.

Even after most US import tariffs were temporarily lifted on April 9, funds still experienced a stark $127 million in net outflows. This unexpected move has traders puzzled, prompting them to wonder what’s driving the continuous drain and why Bitcoin‘s surge to $82,000 on the same day didn’t finally ignite ETF investor confidence.

Tariff Fears Fuel Flight to Safety

The escalating rhetoric around trade tariffs has further spooked investors. Proposed tariffs on imports between the U.S. and China, alongside rising manufacturing costs, have stoked fears of prolonged inflation. In response, capital has flowed into assets like gold, which hit record highs this week, and U.S. Treasuries.  

“Bitcoin’s narrative as ‘digital gold’ is being tested,” said one analyst. “When macroeconomic instability strikes, institutional players still default to traditional safe havens.” While some crypto advocates argue that Bitcoin’s long-term value proposition remains intact, recent ETF data suggests a lack of confidence in its immediate stability.  

What’s Next for Bitcoin ETFs?

The ongoing outflow streak raises questions about the resilience of Bitcoin ETFs in turbulent markets. Proponents remain optimistic, pointing to potential regulatory clarity and institutional adoption later this year. However, short-term sentiment hinges heavily on macroeconomic developments, including central bank policies and global trade dynamics.

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Filed under: News - @ April 11, 2025 12:25 pm