Comprehensive Analysis of US-Based Spot Bitcoin ETFs Amid Trade Tensions
Spot Bitcoin ETFs Face Persistent Outflows Amid US-China Trade Tensions
The landscape of US-based spot Bitcoin ETFs (exchange-traded funds) has recently been marked by significant capital withdrawals. These financial products have not been immune to the ongoing trade tensions between the United States and China, which seem to be driving US investors away from riskier assets like digital currencies and crypto-based financial instruments.
Spot Bitcoin ETFs Experience Seven Consecutive Days of Outflows
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Recent market data reveals a troubling trend for spot Bitcoin ETFs, with a substantial $713 million in net outflows recorded over the past week. This persistent capital flight indicates a declining interest in crypto exchange-traded products among American investors.
According to SoSoValue, US-based spot Bitcoin ETFs experienced a daily net outflow of $1.03 million on Friday, April 11. This marked the seventh consecutive day of net outflows for these crypto-based financial products. Notably, many spot Bitcoin ETFs, including BlackRock’s IBIT—the largest BTC exchange-traded fund by net assets—reported zero net flow by the week’s end. However, there were exceptions, such as the ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB), which showed some activity on Friday.
The ARK 21Shares Bitcoin ETF recorded a significant inflow of $11.28 million, ending a six-day streak of outflows. In contrast, the Bitwise Bitcoin ETF saw a total withdrawal of $12.31 million, closing the week on a negative note. This extended the cumulative outflow streak for US Bitcoin ETFs to seven consecutive days, highlighting a broader trend of investor hesitancy.
Impact of Trade Uncertainty on Global Financial Markets
The recent underperformance of spot Bitcoin ETFs is largely attributed to the mounting uncertainty in global financial markets, exacerbated by the ongoing trade war between the United States and China. This instability is also affecting other US-based crypto products, including spot Ether ETFs. Data from SoSoValue indicates that Ethereum spot ETFs saw a total net outflow of $29.1981 million on Friday, marking the fourth consecutive day of capital flight.
Bitcoin Price Trends Amid Market Uncertainty
The volatile market conditions have also impacted Bitcoin’s price trajectory. At the start of the past week, Bitcoin’s value dipped to around $74,000. However, it rebounded to over $83,000 following an announcement by US President Donald Trump, who decided to pause tariffs on imports from countries other than China.
Bitcoin’s price continued to show resilience in response to further trade-related news. President Trump’s decision to exempt computer gadgets, smartphones, and chips from new tariffs contributed to Bitcoin’s positive momentum. As of this writing, Bitcoin’s price hovers just above $85,000, reflecting an almost 2% increase in the past 24 hours.
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