YEREVAN (CoinChapter.com) — Bitcoin ETF products recorded heavy outflows this week, losing $218 million across two trading days, according to Farside Investors. The largest withdrawals happened on Tuesday, with $157.8 million leaving Bitcoin ETF products.
On Monday, the outflows totaled $60.6 million, led by Bitwise (BITB), Ark Invest (ARKB), and WisdomTree (BTCW). Only BlackRock’s IBIT saw positive Bitcoin ETF flows.
By April 1, BlackRock’s IBIT had no inflows or outflows, signaling investor hesitation. The movement reflected caution across crypto markets as Trump tariffs were expected later in the week.
Ethereum ETF Sees $3.6 Million in Net Outflows
Ethereum ETF products also saw reduced interest. According to Farside, $3.6 million in net outflows were recorded on April 1. This move aligns with reduced risk appetite from institutional investors.
Analyst Crypto Rover said,
“The Spot Bitcoin ETFs saw $157.8 million outflow yesterday. The Spot Ethereum ETFs saw a $3.6 million outflow. Institutions are reducing risk ahead of today’s tariff announcement.”
These figures point to cautious behavior among larger investors as they anticipate possible market volatility tied to new Trump tariffs.
Bitcoin ETF Flows React to Upcoming Trump Tariffs
The drop in Bitcoin ETF flows came ahead of a potential trade policy shift. On April 2, President Donald Trump is expected to announce sweeping tariffs on key imports.
Bloomberg reported that the White House has not finalized its decision, citing unnamed sources familiar with the discussions. The delay has created uncertainty in financial markets, including cryptocurrencies.
Economic analyst Alex Krüger noted:
“April 2nd is similar to election night. It is the biggest event of the year by an order of magnitude. 10x more important than any FOMC.”
This uncertainty has influenced institutional behavior in Bitcoin ETF and Ethereum ETF products.
Gold Safe Haven Preferred Over Crypto in Current Climate
With new Trump tariffs looming, many institutional investors are shifting toward traditional assets. A Bank of America survey showed that 58% of fund managers prefer gold safe haven strategies during trade war conditions. Only 3% supported Bitcoin as a risk-off hedge.
Concerns around Bitcoin ETF risk include its high volatility and low liquidity during market stress. These concerns continue to limit its broader acceptance as a safe haven.
In contrast, gold has historically drawn capital during macroeconomic turbulence, reinforcing its current popularity.
Bitcoin Supply on Exchanges Hits 7-Year Low
Blockchain data shows a different trend than institutional activity. According to Santiment, the Bitcoin supply on exchanges has dropped to 7.53%, the lowest level since February 2018.
Lower supply on exchanges typically signals that holders do not plan to sell. This behavior shows contrast between Bitcoin ETF redemptions and long-term holding strategies.
While Ethereum ETF and Bitcoin ETF flows declined, on-chain data reflects a continued pattern of long-term accumulation.