Bitcoin News Today: Bitcoin ETFs: The Bulwark Against Tariff-Driven Crypto Panic

Source: [1] Full Source Title (https://finance.yahoo.com/news/bitcoin-etfs-bring-2-71b-115255549.html)

[2] Full Source Title (https://www.coindesk.com/markets/2025/10/07/u-s-bitcoin-etfs-log-usd1b-inflows-again-a-level-that-s-marked-local-tops-six-times-before)

[3] Full Source Title (https://markets.financialcontent.com/wral/article/marketminute-2025-10-4-bitcoin-etfs-fuel-record-inflows-propelling-market-towards-new-all-time-highs)

[4] Full Source Title (https://www.forbes.com/sites/digital-assets/2025/10/11/did-trumps-tariff-trigger-a-crypto-purge-or-just-a-panic/)

Trump's proposed 100% tariffs on China imports, announced on October 10, 2025, triggered a $19 billion liquidation in crypto markets, according to Coinglass. However, U.S. spot Bitcoin ETFs recorded a record $10 billion in net inflows during October, driven by institutional confidence and macroeconomic tailwinds, despite the geopolitical volatility.

The tariff announcement, framed as a response to China's rare-earth export controls, caused immediate panic across global markets, with Bitcoin dropping below $102,000. Yet, ETF inflows surged as investors sought regulated exposure to Bitcoin. BlackRock's iShares Bitcoin Trust (IBIT) led the charge, contributing $2.63 billion in a single week, pushing its assets under management (AUM) to $94 billion . Cumulative October inflows surpassed $5 billion in just two weeks, with daily inflows exceeding $500 million on multiple occasions .

The ETFs' resilience amid the turmoil highlighted their role as a stabilizing force. While the tariff-induced selloff erased $500 billion in crypto market value over the weekend, Bitcoin ETFs continued to attract capital as markets stabilized. By October 13, the total crypto market cap rebounded above $4 trillion, with ETFs acting as a "durable buyer" in the system .

Analysts noted that ETF inflows and outflows were closely tied to geopolitical and macroeconomic signals. For instance, the week of October 6–10 saw $2.71 billion in net inflows into spot Bitcoin ETFs, with IBIT accounting for 97% of the volume . This trend aligned with historical patterns where large ETF inflows preceded Bitcoin price peaks, as seen in March and July 2025 .

The tariff-driven volatility also exposed structural vulnerabilities in crypto markets. Binance's liquidity stress index hit 0.2867, the highest since early 2025, as stop-loss triggers and leveraged liquidations exacerbated price swings . However, ETFs provided a counterbalance by offering regulated, 24/7 liquidity and reducing reliance on volatile retail trading.

BlackRock's IBIT became the most profitable ETF for the firm, generating $244.5 million in annual revenue with nearly $100 billion in AUM . Its rapid growth-reaching $100 billion in AUM in 435 days-underscored the shift toward institutional adoption of Bitcoin as a macro hedge .

Looking ahead, analysts remain bullish. Bitcoin's 24-hour trading volume climbed to $92 billion, a 15% increase, as ETF-driven demand outpaced short-term volatility . Despite the tariff-induced correction, the market's ability to rebound highlighted ETFs' role in bridging crypto and traditional finance, with Bitcoin ETFs now holding 6.5% of the total supply .

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