On Tuesday, investors pulled $326 million from U.S. spot Bitcoin exchange-traded funds (ETFs), marking the largest single-day withdrawal since March 11. This latest retreat comes as traders respond to rising tensions between the U.S. and its trading partners due to President Trump’s new tariffs. The introduction of these tariffs, including a 104% duty on Chinese imports, has created uncertainty in global markets, prompting investors to reduce their portfolio risks. BlackRock’s IBIT was the most impacted, experiencing a loss of $253 million, its third-largest decline since its inception.
The outflows have continued a downward trend for Bitcoin ETFs, which have faced withdrawals for four straight days. These losses align with a decrease in Bitcoin’s price, which dipped to $75,100 on Tuesday, marking its lowest level in five months. Analysts link the outflows to a mix of risk aversion and the market’s response to Trump’s tariffs.
Bitcoin ETFs weren’t the only assets experiencing losses; Ethereum’s spot ETFs also reported outflows on Tuesday, with $3.3 million withdrawn from the funds. The largest drop occurred in Fidelity’s Ethereum fund, highlighting Ethereum’s overall difficulties. Ethereum’s price fell below $1,450, continuing its downward trend that has seen the asset decline in value relative to Bitcoin over the past five years. The ETH/BTC ratio reached a five-year low, indicating ongoing weakness in Ethereum’s price compared to Bitcoin.
Despite these setbacks, Ethereum’s layer-2 networks, such as Arbitrum and Optimism, are witnessing a surge in activity and on-chain value. These networks are aiding in Ethereum’s scalability, demonstrating some growth despite the mainnet’s stagnation. Additionally, Ethereum’s transaction fees have recently dropped to their lowest point since August 2024, suggesting a decrease in network congestion.
In a different development, 21Shares announced the launch of a fully backed Dogecoin exchange-traded product (ETP) on Switzerland’s SIX Swiss Exchange. This Dogecoin ETP, developed in partnership with the Dogecoin Foundation, represents a noteworthy advancement for the meme-inspired cryptocurrency as it garners increased institutional interest. This launch coincides with Dogecoin’s growing recognition, even as Bitcoin and Ethereum face market pressures.
The market remains highly volatile as the ramifications of the tariff dispute continue to unfold. Investors are closely monitoring the situation, with Bitcoin’s performance and Ethereum’s challenges at the forefront of this uncertain landscape.
