Apr 4, 2025

Trump Tariff Announcement Triggers $100M Pullback From Bitcoin ETFs

U.S. spot Bitcoin ETFs faced nearly $100 million in net outflows on Thursday, as markets reacted sharply to President Donald Trump’s sweeping new tariff policy announcement. The move follows a day of optimism in the crypto sector, where ETFs had seen over $220 million in inflows just 24 hours earlier—making the reversal all the more dramatic.

Grayscale’s GBTC bore the brunt of the selloff, hemorrhaging $60.2 million in investor capital. Bitwise’s BITB followed with $44.19 million in outflows, while Fidelity’s FBTC lost $23.27 million, according to data from SoSoValue. Other issuers, including ARK 21Shares, VanEck, and WisdomTree, also saw capital exit their funds, signaling a broad-based shift in sentiment.

The market retreat was largely fueled by renewed economic uncertainty after Trump revealed plans to impose a minimum 10% tariff on all imports, with select countries like China and members of the European Union facing even steeper penalties—some exceeding 50%.

Interestingly, BlackRock’s IBIT stood alone as the only major Bitcoin ETF to buck the trend, drawing in $65.25 million in net inflows.

Trump’s “Liberation Day” Tariff and Its Global Fallout

At the center of Thursday’s market chaos was President Donald Trump’s sweeping announcement of new trade tariffs, framed under the bold banner of “Liberation Day.” The policy introduces a blanket 10% import tax on goods entering the U.S., with dozens of countries facing significantly higher rates under what Trump called “reciprocal” measures.

Under the new rules, Australia will be subject to the baseline 10% levy, while China faces a 34% reciprocal tariff—stacked on top of an existing 20%, bringing its effective rate to over 50%. Southeast Asian nations will absorb some of the harshest penalties, with Cambodia and Vietnam hit with 49% and 46% tariffs, respectively.

Trump defended the move as a strategy to boost domestic manufacturing and respond proportionally to countries that impose higher duties on U.S. goods. However, economists warn the policy could reignite inflation and trigger retaliatory measures from global trade partners, further destabilizing both traditional and crypto markets.

Crypto and Stocks Sink in Sync as Markets React to Tariff Shock

The fallout from President Trump’s aggressive tariff announcement rippled swiftly through global markets, triggering steep losses across both traditional equities and digital assets. Wall Street endured one of its worst trading sessions in recent memory, with the Nasdaq plunging 6%, the S&P 500 sliding 4.8%, and the Dow Jones Industrial Average retreating 3.9%—a selloff fueled by fears of escalating trade tensions and their economic fallout.

The cryptocurrency market mirrored this downturn. Bitcoin, often considered a hedge against traditional financial risk, dropped more than 6% in the hours following the announcement. Though the asset recovered slightly, trading around $84,480 at press time, it remained down 0.1% over the past 24 hours. Ether also declined, falling 1% to approximately $1,805.

Chart from Bitbo.io

Digital asset ETFs followed suit. U.S.-listed spot Ether ETFs logged $3.59 million in net outflows on Thursday—adding to the $51.24 million pulled the day before. This marks the third consecutive day of negative flows for Ether-focused funds, indicating broader investor caution amid macroeconomic instability.

The sudden shift in global trade dynamics, triggered by President Trump’s aggressive tariff strategy, has sent shockwaves through both equity and crypto markets. Investors, already navigating an uncertain economic landscape, are responding by pulling capital from risk-sensitive assets like Bitcoin and Ether ETFs.

With traditional markets tumbling and digital assets failing to offer shelter, the narrative that crypto can serve as a hedge in times of macroeconomic stress is once again being challenged. As geopolitical tensions rise and market volatility deepens, all eyes are now on how both policymakers and institutional investors will recalibrate their strategies in the weeks ahead.

Quick Facts

  • Spot Bitcoin ETFs in the U.S. saw $99.86 million in net outflows Thursday, reversing $220 million in inflows from the day before.
  • Grayscale’s GBTC led withdrawals, while BlackRock’s IBIT was the only fund to record net inflows, pulling in $65.25 million.
  • President Trump’s new tariff policy imposes a 10% baseline on all imports, with countries like China facing total rates exceeding 50%.
  • Broader markets reacted sharply, with the Nasdaq dropping 6% and Bitcoin falling over 6% in the wake of the announcement.

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