Bitcoin ETFs Outflows Soar 300% Amid Escalating US-China Trade Tensions

Recent data revealed that 12 U.S. Bitcoin ETFs recorded outflows of $708.9 million.

At the heart of this shift is the escalating tension between the US-China trade tension, sparked by President Trump’s aggressive tariff proposals.

Nearly $1 Billion Withdrawn From Bitcoin ETFs Since April

According to data from Farside, U.S. Bitcoin ETFs continue facing consistent withdrawals in April.

From April 7 to 11, spot Bitcoin ETFs saw recorded daily outflows, closing every trading day in the red.

Last week started with $103.9 million pulled on Monday, followed by $326.3 million on Tuesday, $127.2 million on Wednesday, $149.5 million on Thursday, and $1 million on Friday.

BlackRock’s IBIT led the wave, shedding $342.6 million. Grayscale’s GBTC followed with $160.9 million, while Fidelity’s FBTC saw a $74.6 million exit.

Smaller funds, including BITB, BTCO, ARKB, EZBC, BTCW, and HODL, collectively lost tens of millions, with individual outflows between $11 million and $38 million.

Only one product managed to defy the trend. Grayscale’s mini Bitcoin Trust reported $2.4 million in inflows. Valkyrie’s BRRR ETF saw no activity at all.

This steady decline isn’t new. Outflows began accelerating in late March.

Between March 31 and April 4, total net outflows across all 12 U.S. spot Bitcoin ETFs reached $172.89 million. That 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 approach the $1 billion mark.

Adding to the gloomy picture, Ethereum ETFs have also struggled. Farside’s data shows ETH ETF withdrawals rose 65% to $82.47 million last week.

This marks the seventh consecutive week of Ethereum outflows, totaling over $877 million.

145% vs 125% Tariffs: How Long Will the US-China Trade Tensions Last?

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. But the situation escalated quickly.

On April 9, President Trump announced an unexpected 125% tariff targeting Chinese goods while extending a 90-day delay for other nations.

He cited unfair trade practices from Beijing as justification.

However, China did not stay quiet. 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.

Chinese authorities criticized 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.

Still, all may not be lost. Behind closed doors, there are whispers that President Trump and Chinese President Xi Jinping are set to meet.

Discussions could be underway to de-escalate and bring both nations back to the negotiating table. If so, it might cool tensions and restore some confidence in the markets, including the crypto space.

Bitcoin Market Outlook: Is a Price Rebound and Global Adoption Underway?

Despite ETF 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. Technical indicators show continued support along an upward trendline.

The 50-period exponential moving average, currently at $82,530, has served as a reliable cushion. Traders seem optimistic, and momentum remains intact.

Meanwhile, influential voices echo through the market noise. Robert Kiyosaki, NYT bestselling author of Rich Dad, Poor Dad, champions Bitcoin’s evolving role in the global financial ecosystem.

He sent out a warning to his millions of followers.

Kiyosaki raised concerns about the dollar’s diminishing purchasing power. “PLEASE LISTEN to Gold, Silver, & Bitcoin,” he insisted, pointing to 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.

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