Date: April 7, 2025

Source: BeInCrypto


Report:


Digital asset exchange-traded products (ETPs) suffered a significant blow last week, with total outflows reaching $240 million. This shift coincides with escalating trade tensions in the United States, as President Donald Trump announced a sweeping package of new import tariffs.


According to CoinShares’ latest report, the outflows were largely driven by fears that these trade disruptions could stall global economic growth. James Butterfill from CoinShares noted, "Digital asset investment products saw outflows totaling $240 million last week, likely in response to the latest U.S. tariff announcements, which are seen as a threat to economic expansion."


Bitcoin led the outflows with $207 million, significantly affecting its year-to-date (YTD) inflow, which now stands at $1.3 billion. Ethereum products also saw $37.7 million in outflows, while Solana and Sui experienced $1.8 million and $4.7 million respectively.


This marks a sharp reversal from the previous week’s report, which recorded $18 million in inflows to altcoins, ending a four-week losing streak.


U.S. investors accounted for $210 million of the total outflows, underscoring the market's unease with Trump’s tariff strategy. The new plan includes two main components: a flat 10% tariff on all imports to the U.S. starting April 5, and reciprocal tariffs of 11% to 50% targeting countries with significant trade surpluses or high trade barriers. The latter will begin on April 9 and affect 57 to 90 countries.


China faces a 34% reciprocal tariff in addition to an existing 20%, totaling 54%. The European Union, Japan, and Vietnam will face tariffs of 20%, 24%, and 46% respectively. Local Chinese media have condemned the tariffs as economic bullying, accusing the U.S. of unilateralism and protectionism.


Meanwhile, U.S.-based spot Bitcoin ETFs saw $172.89 million in net outflows, ending a two-week streak of inflows that had added nearly $941 million. Data from SoSoValue shows that most redemptions occurred over four of five trading days, reflecting investor anxiety.


Farside Investors highlighted that Grayscale’s GBTC led the ETF outflows with $95.5 million, followed by WisdomTree’s BTCW at $44.6 million. Other funds, including BlackRock’s IBIT and Bitwise’s BITB, reported redemptions ranging from $4.9 million to $35.5 million.


Despite a midweek inflow of $220.76 million on April 3, it wasn’t enough to offset large redemptions on other days, particularly the $157.64 million recorded on Tuesday alone.


Ethereum ETFs were not spared, logging their sixth consecutive week of outflows, totaling nearly $800 million since February. Last week alone, Ethereum funds faced $49.93 million in redemptions.


Still, some institutional optimism remains. Franklin Templeton’s EZBC, Fidelity’s FBTC, and Grayscale’s newer Bitcoin Trust reported a combined $61.8 million in inflows.


CryptoQuant CEO Ki Young Ju emphasized that despite ETF volatility, institutional flows still heavily rely on on-chain settlement. “Dismissing on-chain data due to paper Bitcoin is misleading; it’s essential for understanding supply and demand dynamics,” he posted on X (Twitter).


As Q2 begins, markets are watching whether this downturn is temporary. Standard Chartered suggests Bitcoin could rebound by Friday, though sentiment signals a possible deeper institutional shift in crypto investment narratives.


Analysis:


The sharp outflows from crypto investment products illustrate how macroeconomic policies—especially U.S. trade measures—can ripple through emerging financial sectors like digital assets. The $240 million outflow is not just a market reaction to tariffs; it’s also a reflection of increasing investor sensitivity to global economic signals.


Key takeaways:


Bitcoin Dominance: Bitcoin bore the brunt of the outflows, suggesting it is still the primary risk asset investors move in and out of during macro shocks.


Institutional Hesitation: The outflows from U.S. Bitcoin ETFs show that institutional appetite is highly sensitive to regulatory and economic policy, despite previous bullish trends.


Tariff Fallout: Trump’s tariffs introduced sweeping and sudden uncertainty—historically not favored by crypto markets, which thrive on speculation but suffer under unpredictability.


Altcoin Vulnerability: Ethereum, Solana, and Sui’s outflows indicate broader risk-off behavior in the digital asset space.


Mixed Signals: While some inflows into select ETFs show pockets of confidence, they were not enough to counteract the prevailing bearish sentiment.


The big picture? Crypto is no longer an isolated speculative playground—it’s now tethered to geopolitical and macroeconomic developments, and investors are watching policy moves with Wall Street-like attentiveness.