Simply put
- On Tuesday, Bitcoin ETF experienced a drop of $1.918 billion, marking its fourth consecutive day of selling after hitting recent highs.
- Trump’s renewed tariff threats towards India and other sectors have led to a risk-averse mood, prompting institutional investors to seek safer asset options.
- On a brighter note, Ethereum ETFs gained $73.3 million on Tuesday, breaking a two-day losing streak, while Bitcoin held steady at $114,000.
Bitcoin ETF is facing a significant outflow for the fourth day in a row, which seems to be dragging down the overall performance following recent all-time highs.
Data from SOSOVALUE indicates that the total sales across all US funds tracking Bitcoin spot prices reached $196.8 million on Tuesday.
However, this figure is comparatively less alarming than in recent days. Outflows were $333.19 million on Monday, but the $81.225 million on Friday marked the second highest since these products began in January 2024.
The four-day outflow has resulted in a net loss of $1.4 billion in Bitcoin funds.
Donald Trump has escalated his tariff rhetoric, including fresh tax threats directed at India, along with concerns surrounding imported medicines and semiconductors.
The renewed trade war concerns have fostered a risk-off sentiment among investors, who now appear more inclined to adopt safer positions in the current economic uncertainty.
Currently, Bitcoin is stable at $114,000, having remained flat over the last 24 hours; nevertheless, it has fallen by 2.8% in the past week.
According to Sosovalue, Ethereum ETFs on Wall Street enjoyed an influx of $73.3 million on Tuesday after a two-day downturn. Previously, they experienced spills of $465 million and $152 million on Monday and Friday, respectively.
For about 20 days prior, ETFs benefited from price surges, showing a dramatic bounce.
Analysts have indicated that the introduction of ETFs has significantly influenced Bitcoin’s volatility.
Eric Baltunas from Bloomberg recently highlighted that Bitcoin has surged by 250% since BlackRock’s initial submission for the Ishares Bitcoin Trust while noting a surprisingly stable trend without any severe drawdowns.
In a recent post, he remarked that the lack of volatility presents both pros and cons.
He suggested this stability helps in attracting larger investors and supports the potential for broader currency adoption. However, he also noted the downside — that such stability may mean fewer explosive growth opportunities.
