Bitcoin ETFs Face $127 Million Outflow Despite Market Surge After Trump’s Tariff Delay
U.S. spot bitcoin exchange-traded funds (ETFs) experienced a significant net outflow of $127.12 million on Wednesday, even as financial markets rallied following President Donald Trump’s announcement of a 90-day pause on new tariffs. The decision, which also lowered reciprocal duties to 10% for most countries while hiking tariffs on China to 125%, sparked widespread gains in both traditional and cryptocurrency markets.
According to data from SoSoValue, BlackRock’s IBIT ETF saw the largest withdrawal, shedding $89.71 million, while Grayscale’s GBTC lost $33.8 million. VanEck and WisdomTree ETFs also reported outflows, contributing to a five-day streak of negative flows for these funds. In contrast, Bitwise’s BITB stood alone, attracting $6.71 million in inflows.
The ETF withdrawals unfolded against a backdrop of soaring markets. U.S. stocks rebounded sharply after Trump’s trade policy shift, with the Dow Jones Industrial Average leaping 7.87%, the S&P 500 climbing 9.52%, and the Nasdaq surging 12.16%—its biggest daily gain since January 2001, per CNBC. Crypto-related stocks also rode the wave, with Coinbase jumping 16.91% and Strategy (formerly MicroStrategy) soaring 24.76%.
The rally extended globally, with Asian markets following Wall Street’s lead. Japan’s Nikkei 225 surged 8.68% by Thursday, South Korea’s Kospi gained 6.07%, and Hong Kong’s Hang Seng rose 3.13%. The Shanghai Composite saw a more modest uptick of 1.34%.
In the crypto space, bitcoin climbed 7.16% to $82,115 over the past 24 hours, while ether rose 11.08% to $1,617, according to The Block’s price data. Analysts attribute the market upswing to optimism that Trump’s tariff pause could pave the way for trade negotiations, potentially averting a broader trade war.“The market is rallying in anticipation that most trading partners will strike deals with the U.S.,” said Jeff Mei, COO of crypto exchange BTSE. However, he noted that traders remain wary of escalating U.S.-China trade tensions, which could temper the optimism.
Despite the broader market enthusiasm, the persistent outflows from spot bitcoin ETFs highlight a cautious stance among some investors. These funds, which allow people to invest in bitcoin without directly owning it, have become a popular way to track the cryptocurrency’s performance. Wednesday’s figures suggest a disconnect between ETF activity and the bullish trends in crypto prices and stocks—a dynamic that analysts will likely watch closely in the days ahead.