Bitcoin ETFs See $708.9M Outflows Amid US-China Trade Tensions

Investors have shown a significant shift in sentiment amid escalating global tensions and market volatility, as indicated by the $708.9 million outflows from U.S. Bitcoin ETFs. This trend is largely attributed to the escalating trade tensions between the US and China, sparked by President Trump’s aggressive tariff proposals.

The outflows from Bitcoin ETFs have been consistent throughout April, with daily withdrawals recorded from April 7 to 11. BlackRock’s IBIT led the wave with $342.6 million in outflows, followed by Grayscale’s GBTC with $160.9 million, and Fidelity’s FBTC with $74.6 million. Smaller funds also experienced significant outflows, ranging from $11 million to $38 million. The only product that managed to defy the trend was Grayscale’s mini Bitcoin Trust, which reported $2.4 million in inflows.

This steady decline in outflows began accelerating in late March, with total net outflows across all 12 U.S. spot Bitcoin ETFs reaching $172.89 million between March 31 and April 4. This pullback ended a two-week inflow streak that had brought in $941 million. Less than halfway through April, the total net outflows from Bitcoin ETFs approached the $1 billion mark.

Adding to the gloomy picture, Ethereum ETFs have also struggled, with withdrawals rising 65% to $82.47 million last week. This marks the seventh consecutive week of Ethereum outflows, totaling over $877 million.

One major shadow looming over Bitcoin ETFs is the renewed US-China trade tension. The uncertainty began in early April when President Trump proposed a flat 10% tariff on all imports. However, the situation escalated quickly when President Trump announced an unexpected 125% tariff targeting Chinese goods while extending a 90-day delay for other nations.

In retaliation, Chinese officials imposed up to 125% tariffs on American products and halted the export of rare-earth minerals, critical components for tech manufacturing and clean energy sectors. Beijing described Washington’s move as excessive and damaging to global trade rules, criticizing the tariffs as one-sided, disruptive, and out of step with common sense economics.

Veteran investor and gold advocate Peter Schiff pointed out the dollar’s weakness, noting its sharp decline against the euro, yen, and Swiss franc, falling more than 2.3% and, in some cases, close to 4%. He further questioned whether the U.S. was truly gaining from these confrontational trade tactics.

Despite the outflows, Bitcoin, the world’s largest cryptocurrency, has climbed back above $84,000 after dipping near $76,000 the previous week. The rebound looks solid, with technical indicators showing continued support along an upward trendline. The 50-period exponential moving average, currently at $82,530, has served as a reliable cushion.

Influential voices in the market, such as Robert Kiyosaki, NYT bestselling author of Rich Dad, Poor Dad, champion Bitcoin’s evolving role in the global financial ecosystem. Kiyosaki raised concerns about the dollar’s diminishing purchasing power and described Bitcoin as a strategic hedge against inflation—a digital fortress in uncertain times. He further described Bitcoin as a people-powered currency, an asset outside the control of governments.

Meanwhile, Bitcoin adoption is spreading beyond the investing class. Recently, Lomond School in Scotland announced it would accept Bitcoin for tuition starting in the Autumn 2025 semester. This marks the first time a U.K. school has embraced digital currency in such a direct way. Last year, the University of Wyoming created a dedicated Bitcoin Research Institute, and the University of Austin recently allocated $5 million of its $200 million endowment to Bitcoin in early 2025.

The trend is clear. While the US-China trade tension and President Trump’s economic moves may trigger short-term volatility, Bitcoin continues to gain traction globally.