Crypto ETFs See $733.2M Outflow Amid Trade Uncertainty

On April 10, Coindesk analyst Omkar Godbole noted that despite the surge in cryptocurrency prices following President Trump's announcement of a 90-day tariff truce, there were significant outflows from US Bitcoin and Ethereum spot ETFs on Wednesday. Bitcoin ETFs experienced a combined net outflow of $127.2 million on that day, with a total outflow of $722 million over the past five days. Ethereum ETFs saw an outflow of $11.2 million on the same day.

The decline in investor demand is attributed to the macroeconomic uncertainty stemming from US-China trade tensions and volatility in the bond market. This uncertainty may prompt macro investors to sell off a wide range of assets, including crypto ETFs, in favor of cash. The tariff-induced uncertainty has created a challenging environment for investors, leading to a cautious approach towards riskier assets like cryptocurrencies.

According to the analyst, the outflows from Bitcoin and Ethereum spot ETFs highlight the sensitivity of the cryptocurrency market to broader economic factors. The tariff truce, while initially boosting cryptocurrency prices, has not been enough to alleviate the concerns of investors who are now seeking safer havens for their investments. The situation underscores the need for stability in global trade relations to foster a more predictable investment climate for digital assets.