Bitcoin, Ether ETF Redemptions Climb as Tariff Uncertainty Roils Markets

Even as digital asset prices rallied sharply on Wednesday, investor sentiment toward crypto ETFs remained firmly risk-off.

Spot bitcoin (BTC) and ether (ETH) exchange-traded funds listed in the U.S. saw continued outflows, despite the broader market cheering President Trump’s announcement of a 90-day tariff pause for most countries. China, however, was hit with an even steeper levy, pushing its tariff rate to 125%.

Bitcoin ETFs recorded net outflows of $127.2 million, led by BlackRock’s IBIT, which alone lost $89.7 million, according to Farside Investors. This marked the fifth straight day of net redemptions, totaling $722 million over the stretch. Ether ETFs didn’t fare much better, with $11.2 million in net withdrawals across nine products.

The outflows occurred even as bitcoin rose over 8% to $83,500 and ether jumped 13% to $1,770, following a broader rebound in risk assets. Equities posted massive gains as well, with the Nasdaq 100 surging 12%—its biggest single-day percentage jump in years—and the S&P 500 climbing nearly 10%.

Analysts suggest that macroeconomic uncertainty and heightened U.S.-China trade tensions may be spooking institutional investors, prompting some to take profits or de-risk despite bullish price action. Volatility in the bond market is also pressuring capital allocation decisions across asset classes.

The ETF outflows serve as a reminder that price alone doesn’t always dictate investor appetite—especially during periods of geopolitical and macroeconomic flux.

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