Bitcoin ETFs See $800M Outflows in April Amid Market Volatility

Bitcoin (BTC) exchange-traded funds (ETFs) have experienced significant outflows, totaling over $800 million in April. This trend follows a period of substantial outflows in February and March, with about a dozen U.S.-listed spot Bitcoin ETFs seeing a record $3.56 billion in outflows during February and $767 million in March. The primary drivers behind these outflows have been institutional investors shifting their capital into the bond market, seeking stability amidst market volatility.

The ongoing market volatility is largely attributed to U.S. President Donald Trump’s tariff strategy and the resulting trade war with China. This uncertainty has led many investors to move away from risk assets, including cryptocurrencies, and towards safer investments such as bonds and gold. The strong demand for three-month Treasury bills auctioned on April 14, as indicated by data from CME, underscores the preference for safe havens during times of economic uncertainty.

Institutional investors are increasingly viewing the U.S. debt market as a safe haven, especially as U.S. recession odds have risen above 50% on major online betting platforms. Elevated Japanese bond yields have further complicated the outlook for risk assets, prompting a flight to safety. As a result, many institutional investors are protecting their capital by allocating funds to bonds and gold, which is trading near an all-time high. Bitcoin’s price, currently around $84,800, has fallen by 10% this year, reflecting the broader market sentiment.

In this environment, the performance of Bitcoin over the past three months is particularly noteworthy. The cryptocurrency has declined by 14.53% in the last 12 weeks, indicating a shift in investor sentiment towards more stable assets. While most Wall Street firms do not offer ratings or price targets on Bitcoin, the recent performance highlights the challenges faced by cryptocurrencies in the current economic climate.