Bitcoin ETFs See Six Consecutive Days of Capital Outflows, Signaling Investor Nervousness
In the midst of escalating trade tensions between the US and China, Bitcoin Spot ETFs in the US have experienced six consecutive days of net outflows, totaling $877 million. This trend reflects the increasing nervousness among investors.
Another Day of Capital Outflows for Bitcoin ETFs
Last Thursday, US Bitcoin Spot ETFs recorded net outflows of $149.6 million, marking the sixth consecutive day of negative flows. This trend highlights the growing unease among investors amid intensifying global trade tensions between the US and China.
Fidelity (FBTC) saw the largest withdrawals, with $74.6 million pulled out in a single day. Grayscale (GBTC) also experienced the trend, with $44.6 million in liquidated assets. Funds offered by Ark Invest, 21Shares, Bitwise, Invesco, and Franklin Templeton also saw their holdings shrink. In total, almost $877 million evaporated from Bitcoin ETFs in under a week.
Two Exceptions in the Storm
While most funds experienced declines, only one had a positive day: the Grayscale Mini Bitcoin Trust, which attracted $9.87 million. Meanwhile, BlackRock’s flagship product, IBIT, recorded a neutral day with no inflows or outflows. This contrast demonstrates how the market is fragmented and sensitive to changes in macroeconomic equilibrium.
Trade Tensions as a Catalyst for Risk Aversion
Behind this exodus from risky assets lies a well-identified cause: the trade war reignited by Donald Trump. By unilaterally increasing tariffs on Chinese imports to 145%, the US President has revived tensions with Beijing, which retaliated by raising its own customs duties on American goods to 125%.
According to analysts, these tensions not only impact global trade; they also directly affect market risk perception. Investors are fleeing volatile assets and seeking refuge in safe-haven assets like gold or cash.
Fed Decision in the Spotlight
This instability is evident across financial markets. Last Thursday, the US indices Dow Jones, S&P 500, and Nasdaq all experienced declines after a record-breaking day on Wednesday, followed by a slight continuation of the downward trend on Friday’s opening.
All eyes are now on the upcoming Federal Reserve meeting scheduled for May 6. This event could represent a major turning point, bringing clarity to future macroeconomic trends. According to the CME Group’s FedWatch tool, markets assess the probability of an interest rate cut on that date at 38%.
For now, risk aversion prevails, and Bitcoin, despite sometimes being seen as an alternative to traditional financial systems, seems to be caught up in the retreat logic.
