Crypto ETFs See Outflows Despite Market Rally Following Trump Tariff Pause
U.S.-listed spot bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) experienced significant outflows on Wednesday, even as cryptocurrency prices surged after former President Donald Trump announced a 90-day suspension of tariffs for most countries—excluding China.
According to data from Farside Investors, the 11 spot bitcoin ETFs recorded a combined net outflow of $127.2 million, with BlackRock’s IBIT fund alone seeing $89.7 million in redemptions. This marks the fifth consecutive day of outflows, totaling a substantial $722 million across the funds during that period.
Investor sentiment toward ether ETFs also weakened, as the nine funds tracking ETH posted a net outflow of $11.2 million on the same day.
The sustained pullback is being attributed to broader macroeconomic uncertainty, largely fueled by escalating U.S.-China trade tensions and heightened volatility in the bond markets. These conditions have prompted macro-focused investors to liquidate various asset classes, including cryptocurrency ETFs, in favor of cash.
Markets, however, rebounded sharply later in the day after Trump announced a temporary tariff suspension for over 75 countries that did not retaliate against his recent trade measures. China, having responded with retaliatory tariffs, was notably excluded from the relief. In fact, the U.S. further escalated tensions by raising tariffs on Chinese goods to 125%.
Despite ETF outflows, the crypto market rallied. Bitcoin surged more than 8% to reach $83,500, while ether soared 13% to $1,770, supported by broader strength across the altcoin sector, according to CoinDesk data. Meanwhile, the Nasdaq 100 index climbed over 12%, posting its largest single-day percentage gain in decades.
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