In a dynamic market landscape, U.S.-listed spot bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) experienced significant outflows on Wednesday, despite a notable surge in cryptocurrency prices. This shift came on the heels of President Donald Trump’s announcement of a 90-day pause on tariffs for most countries, excluding China.
On Wednesday, the 11 bitcoin ETFs encountered a net outflow of $127.2 million, with BlackRock’s IBIT alone seeing withdrawals totaling $89.7 million, according to data from Farside Investors. This outflow marks the fifth consecutive day of investor withdrawals, leading to a cumulative loss of $722 million in these funds over the week.
The ether ETFs also felt the impact as nine funds recorded a net outflow of $11.2 million on the same day. This declining interest from investors can largely be attributed to ongoing macroeconomic uncertainties stemming from U.S.-China trade tensions and the volatility gripping the bond markets. As a result, many macro investors opted to liquidate various assets, including cryptocurrency ETFs, in favor of holding cash.
Despite the downturn in ETF demand, the broader market experienced a sharp recovery later on Wednesday following Trump’s announcement of a 90-day pause on tariffs affecting over 75 nations that had not retaliated against his recent sweeping duties. However, China remained unaffected, as the U.S. increased its tariffs on Chinese goods to an unprecedented 125%.
As a response to the news, Bitcoin, the leading cryptocurrency by market capitalization, surged over 8% to reach a price of $83,500. Similarly, ether, the native token of the Ethereum blockchain, experienced a 13% jump to $1,770, alongside substantial gains in the altcoin market, according to CoinDesk data. Moreover, Wall Street’s tech-heavy index, the Nasdaq 100, saw a remarkable increase, rising over 12%, marking its most significant single-day percentage gain in decades.
The current scenario underlines the intricate relationship between macroeconomic policies and investor behavior within the cryptocurrency space. As global tensions persist, investors will likely remain cautious, navigating the volatility of both traditional and digital asset markets.
