Bitcoin ETFs See $100M in Outflows as Markets Drop After Trump’s Tariff Announcement

Highlights:

• Bitcoin ETFs saw $99.86 million in outflows after Trump’s tariff announcement.
• Grayscale’s GBTC experienced the largest outflows at $60.2 million.
• Bitcoin futures open interest rose to $52.63 billion.

On April 3, U.S. spot Bitcoin (BTC) Exchange-Traded Funds (ETFs) experienced net outflows of $99.86 million as the stock market declined in response to Donald Trump’s tariff announcement. Grayscale’s GBTC saw the largest outflows at $60.2 million. Bitwise’s BITB followed with $44.19 million and Fidelity’s FBTC at $23.27 million, according to SoSoValue data.

Other funds, including Ark and 21Share’s ARKB, VanEck’s HODL, and WisdomTree’s BTCW, also experienced outflows. In contrast, BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, gained $65.25 million. It was the only fund with inflows on that day.

On April 3, spot Ethereum ETFs recorded a total net outflow of $3.587 million, marking the third consecutive day of outflows. Spot Bitcoin ETFs saw a total net outflow of $99.8591 million, with BlackRock’s Bitcoin ETF (IBIT) being the only one to register a net inflow.…

— Wu Blockchain (@WuBlockchain) April 4, 2025

This indicates that some investors still have confidence in Bitcoin despite the market turmoil. Notably, Thursday’s $99.86 million in outflows reversed the previous day’s $220.76 million inflows. 

​On April 2, Donald Trump announced a 10% tariff on all imports, effective April 5, as part of a broader trade policy shift. This announcement led to significant market volatility, with U.S. stocks and cryptocurrencies experiencing notable declines. Bitcoin is currently priced at $82,962, rising more than 1% in the last 24 hours. Analysts believe Bitcoin’s decline from Thursday’s high of $88,500 reflects increased investor caution following Trump’s tariff announcement.

U.S. spot Ether ETFs lost $3.59 million on Thursday, following a $51.24 million drop the day before. This was the third day in a row of outflows. Ethereum was priced at $1,784 at the time of writing, reflecting a 0.0.59% decline in the last 24 hours.

Bitcoin Futures Traders Bullish While Options Traders Show Caution

The derivatives market is currently divided. Bitcoin futures traders are generally bullish, supported by rising open interest and positive funding rates. In contrast, options traders exhibit more caution, indicating uncertainty regarding the market’s next move. As of the latest data, Bitcoin futures open interest stands at $52.63 billion, reflecting a 2% increase over the past 24 hours. Additionally, the funding rate remains positive, currently at 0.0084%.

When Bitcoin’s price drops, futures open interest rises. This shows traders are increasing leveraged positions despite the decline. Positive funding rates suggest that more traders are holding long positions. This implies traders expect a price rebound.

Caution is needed as BTC’s price could keep falling, triggering long liquidations. Overleveraged positions may be squeezed if this trend continues. Meanwhile, the options market shows less confidence in upward momentum. Traders are more focused on put options, indicating they’re preparing for a possible decline.

Arthur Hayes Believes Trump’s Tariffs Could Fuel BTC Rally Despite Economic Disruption

Arthur Hayes, co-founder of BitMEX, says Trump’s tariffs may shake the global economy. However, he believes this disruption could help Bitcoin rally. He mentioned in an April 3 X post that global imbalances would be fixed. Hayes added that some people are scared, but he supports tariffs.

He stated:

“The technology works, and there aren’t any major changes, good or bad, occurring in the near future. Therefore, Bitcoin trades solely based on the market expectation for the future supply of fiat.”

Some of y'all are running scurred, but I LOVE TARIFFS, some chart porn to understand why.

Global imbalances will be corrected, and the pain papered over with printed money, which is good for $BTC. pic.twitter.com/jc5eZ2VIEa

— Arthur Hayes (@CryptoHayes) April 4, 2025