A steep rise in ETF withdrawals mirrors broader market jitters amid escalating trade friction between the U.S. and China
U.S. Bitcoin exchange-traded funds (ETFs) faced a sharp wave of outflows last week, shedding a total of $708.9 million as rising geopolitical tensions and renewed trade hostilities rattled investor confidence.
The withdrawals mark a 300% spike from the previous week, driven by significant exits from BlackRock’s and Grayscale’s flagship products.
According to data from Farside Investors, from April 7 to 11, all 12 U.S. spot Bitcoin ETFs posted daily net outflows, with each trading day ending in the red.
BlackRock’s iShares Bitcoin Trust (IBIT) led the decline with $342.6 million in redemptions, while Grayscale’s Bitcoin Trust (GBTC) saw $160.9 million withdrawn. Fidelity’s FBTC followed with $74.6 million in outflows.
Trade war fallout deepens crypto ETF slump
The ETF retreat intensified following a renewed escalation in U.S.-China trade tensions. On April 9, former President Donald Trump proposed a sweeping 125% tariff on Chinese imports, citing unfair trade practices.
China responded with its own 125% tariff on U.S. goods and announced a halt to exports of rare-earth minerals, crucial inputs for clean energy and tech manufacturing.
Beijing criticized the move as “excessive and damaging to global trade rules,” labeling the U.S. action as one-sided and disruptive.
The tit-for-tat measures have revived fears of a broader trade war, leading investors to pull back from risk assets, including cryptocurrency ETFs.
Adding to the bearish pressure, Ethereum ETFs also saw rising outflows last week. Farside data showed ETH-linked funds lost $82.47 million, marking the seventh consecutive week of withdrawals. Total Ethereum ETF outflows have now surpassed $877 million.
While nearly all major Bitcoin ETFs saw redemptions, only Grayscale’s mini Bitcoin Trust recorded inflows, adding $2.4 million. Valkyrie’s BRRR fund saw no net activity.
Bitcoin price remains steady as crypto adoption expands
Despite nearly $1 billion in Bitcoin ETF outflows in April, the asset’s spot price has held firm. After dipping near $76,000, Bitcoin has recovered above $84,000.
Technical indicators show support from the 50-period exponential moving average, which currently sits around $82,530.
At the same time, real-world adoption is growing. Scotland’s Lomond School recently announced it will accept Bitcoin for tuition starting in Autumn 2025, becoming the first U.K. school to embrace crypto payments formally.
In the U.S., the University of Wyoming launched a dedicated Bitcoin Research Institute, while the University of Austin allocated $5 million of its endowment to Bitcoin earlier this year.
Also, prominent voices continue to advocate for Bitcoin’s long-term potential. NYT bestselling author Robert Kiyosaki urged his followers to pay attention to Bitcoin’s resilience, calling it a strategic hedge amid weakening trust in fiat currencies and centralized banking systems.
“Gold is at an all time high, demand for silver is exploding, and Bitcoin is roaring,” he posted on X on April 13.
