U.S.-listed spot bitcoin (BTC) and ether (ETH) ETFs saw continued investor outflows on Wednesday, even as crypto markets rallied following President Donald Trump’s decision to pause tariffs on the majority of U.S. trade partners.
Despite Bitcoin soaring over 8% to $83,500 and Ether jumping 13% to $1,770, data from Farside Investors revealed that the 11 bitcoin ETFs experienced a collective net outflow of $127.2 million. BlackRock’s IBIT alone saw $89.7 million in redemptions, marking the fifth straight day of withdrawals totaling $722 million.
Ether ETFs didn’t fare much better, with the nine listed funds seeing a combined outflow of $11.2 million.
Analysts suggest the exodus is driven by broad macroeconomic concerns, particularly escalating U.S.-China trade tensions and heightened volatility in the bond markets. In an environment of uncertainty, many institutional investors are opting to de-risk by liquidating even bullish-positioned crypto ETFs in favor of cash.
Markets staged a sharp recovery late Wednesday after Trump announced a 90-day tariff suspension for more than 75 countries — excluding China. The administration instead increased tariffs on Chinese goods to 125%, reinforcing geopolitical concerns.
While traditional equities rejoiced — the Nasdaq 100 spiked over 12%, its largest one-day gain in decades — investor sentiment in ETF flows suggests traders are still wary of near-term headwinds despite the price action.
