On April 3, the final trading day for spot Bitcoin ETFs in the United States, a massive outflow of nearly $100 million was recorded. This sharp decline was largely triggered by President Donald Trump’s recent tariff announcement on imports, which sent shockwaves through the financial markets. Investors reacted swiftly, leading to notable downturns in both stock and cryptocurrency sectors, with Bitcoin (BTC) suffering a drop of over 6% in value.
Who Led the Bitcoin ETF Exits?
Data from SoSoValue indicates that on April 3, spot Bitcoin ETFs experienced a total outflow of $99.86 million. Dominating this trend was Grayscale’s GBTC, which saw an exit of $60.2 million. Bitwise’s BITB followed closely with an outflow of $44.19 million, while Fidelity’s FBTC recorded a loss of $23.27 million. Other notable withdrawals were reported from Ark and 21Shares’ ARKB fund, as well as VanEck’s HODL ETF and WisdomTree’s BTCW product.
What Impact Did the Tariff Announcement Have?
Trump’s tariff decisions, revealed on April 2, intensified global trade uncertainties. The President announced a base tariff of 10% on imported goods, with some countries facing rates above 50%. Following the announcement, U.S. stock markets experienced a panic, leading to significant declines; the Nasdaq sank by 6%, and the S&P 500 fell by 4.8%. Consequently, Bitcoin dropped rapidly by over 6%, trading at approximately $83,220, while Ethereum (ETH) faced a 1% dip, reaching $1,805.
Despite these tumultuous conditions, BlackRock’s IBIT fund emerged as an exception, recording a net inflow of $65.25 million. Currently, it stands as the largest spot Bitcoin ETF by net asset size, showcasing divergent responses within the market.
- Over $99 million flowed out of Bitcoin ETFs on April 3.
- Grayscale led the outflows with $60.2 million.
- Bitcoin lost more than 6% of its value following Trump’s announcement.
- BlackRock’s IBIT fund is the only fund to gain inflows on that day.
The swift reactions to macroeconomic announcements illustrate the financial landscape’s volatility. Investors in cryptocurrency often target safe havens during traditional market uncertainties, yet they too are vulnerable to sudden shifts in market sentiment triggered by significant political events.
