Bitcoin ETF Outflows Amid US-China Trade Tensions Signal Market Uncertainty
Bitcoin ETF outflows amid US-China trade tensions have reached alarming levels, with investors pulling nearly $709 million from U.S. Bitcoin ETFs in just a week. The outflows reflect growing concerns as market volatility rises due to aggressive tariff proposals by President Trump and strong retaliatory measures from China.
Data from Farside indicates 12 U.S. spot Bitcoin ETFs showed regular outflows from April 7 to 11. These included significant funds like BlackRock’s IBIT, which experienced withdrawals of $342.6 million, followed by Grayscale’s GBTC with $160.9 million and Fidelity’s FBTC with $74.6 million.
Read More: Tether Deploys Hashrate to OCEAN Mining Protocol to Support Decentralized Bitcoin Mining
Other smaller ETFs like as BITB, BTCO, ARKB, and HODL also lost money; only Grayscale’s tiny Bitcoin Trust reported a favourable inflow of $2.4 million. This is a significant turnaround from earlier this year, when ETFs were experiencing significant inflows and institutional adoption was viewed positively.
These ETF outflows’ background is a growing trade confrontation between the United States and China. Beijing has reacted strongly to President Trump’s surprising choice to levy 125% tariffs on Chinese products. China reacted with comparable duties and a stop in the export of rare-earth materials, vital for clean energy and high-tech industries.
The markets have been shaken. Peter Schiff, a seasoned investor, drew attention to the falling U.S. dollar strength, which has fallen more than 2.3% vs major currencies. Schiff wondered whether these trade policies would bring long-term advantages or only increase instability in the financial sector.
Bitcoin has demonstrated tenacity despite the stormy surroundings. Supported by robust technical indicators, Bitcoin recovered above $84,000 after momentarily falling close $76,000. Key level keeping firm, analysts say, is the 50-period exponential moving average about $82,530.
The use of bitcoin is also growing. Starting in Autumn 2025, educational establishments such as Lomond School in Scotland are now taking Bitcoin for tuition payments. U.S. institutions like Wyoming and Austin, on the other hand, are also putting money into Bitcoin via endowments and research initiatives.
Influencers such as Robert Kiyosaki keep pushing Bitcoin as a weapon for financial freedom and a hedge against inflation. His message is straightforward: “Listen to gold, silver, and Bitcoin.”
With seven consecutive weeks of outflows amounting $877 million, Ethereum is likewise under similar strain. Last week, ETH ETFs had another 65% increase in withdrawals, amounting to $82.47 million.
Markets might stabilise given ongoing global economic uncertainty and the prospect of a future meeting between President Trump and Chinese President Xi Jinping. For investors negotiating the erratic crypto scene, the influence of the Bitcoin ETF outflows during US-China trade tensions will continue to be a major element until then.
