On Tuesday, investors withdrew $326 million from U.S. spot Bitcoin exchange-traded funds (ETFs), marking the largest single-day outflow
Investors pulled $326 million from U.S. spot Bitcoin exchange-traded funds (ETFs) on Tuesday, marking the largest single-day outflow since March 11, data from DeFi informant showed. The latest pullback comes as traders digest the implications of President Trump's new tariffs and escalating tensions between the U.S. and its trade partners.
The implementation of the tariffs, such as the 104% duty on Chinese imports, has created uncertainty in global markets, pushing investors to de-risk their portfolios. Among the ETFs, BlackRock (NYSE:BLK)'s IBIT was hit hardest, with $253 million being withdrawn from the fund. This marks the third-worst day for the fund since its launch.
The outflows continue a negative streak for Bitcoin ETFs, which have now seen withdrawals for four consecutive days. These losses coincided with a drop in Bitcoin's price to $75,100, reaching its lowest point in five months. Analysts attribute the outflows to a combination of risk aversion and the broader market's reaction to Trump's tariffs.
Bitcoin ETFs were not the only assets facing losses, as Ethereum's spot ETFs also saw outflows on Tuesday, with $3.3 million pulled from the funds. The largest decline came from Fidelity's Ethereum fund, contributing to Ethereum's overall struggles. The price of Ethereum fell below $1,450, continuing a downward trend that has seen the asset lose value compared to Bitcoin over the past five years. The ETH/BTC ratio dropped to a five-year low, reflecting the ongoing weakness in Ethereum's price relative to Bitcoin.
However, Ethereum's layer-2 networks, such as Arbitrum and Optimism, have seen an increase in activity and value locked on-chain, providing some growth despite the stagnation on the mainnet. Additionally, Ethereum's transaction fees dropped to their lowest level since August 2024, indicating reduced congestion on the network.
In a contrasting move, 21Shares announced the launch of a fully backed Dogecoin exchange-traded product (ETP) on Switzerland's SIX Swiss Exchange. The Dogecoin ETP, launched in partnership with the Dogecoin Foundation, marks a significant step for the meme-inspired cryptocurrency as it receives more institutional attention. The ETP will trade on the SIX Swiss Exchange from Wednesday under the ticker DEFI.
Dogecoin has been gaining recognition despite the challenges faced by Bitcoin and Ethereum. This launch comes as cryptocurrencies continue to evolve, and institutional investors are increasingly seeking exposure to the market through innovative financial products. As the implications of the tariff war unfold and global markets react, investors will be closely watching Bitcoin's performance and Ethereum's challenges in this uncertain environment.
