By Key Points
- Bitcoin and Ethereum ETFs saw $222M in outflows this week.
- BlackRock’s IBIT was the only Bitcoin ETF with positive flows.
- Institutional investors pivot to gold ahead of Trump’s tariff plan.
- Analysts warn of extreme volatility and a potential 15% market drop.
Bitcoin ETF outflows are again in the spotlight, with investors pulling out a staggering $222 million from Bitcoin and Ethereum ETFs this week. The sell-off comes just before President Trump’s anticipated “Liberation Day” tariff announcement, as market participants brace for what could be a major shake-up in both traditional and digital assets.
Investor caution is spreading fast, especially as previous Trump-related events have consistently stirred the crypto market. From his recent pardon of BitMEX founders (Trump shocks crypto world with BitMEX founders’ pardon) to Bitcoin mining policy discussions under his administration, Trump’s unpredictable stance on crypto continues to create waves.
Now, investors are choosing safety over speculation.
Bitcoin ETF flows. Source: Farside Investors – Techtoken
BlackRock’s ETF Stands Alone as Risk Appetite Plummets
According to data from Farside Investors, Bitcoin ETFs have recorded two straight days of heavy outflows. On Monday, funds from Bitwise (BITB), Ark Invest (ARKB), and WisdomTree (BTCW) led $60.6 million in outflows. BlackRock’s IBIT was the lone ETF that saw inflows, though those gains were quickly muted.
By Tuesday, the situation intensified, with a staggering $158 million withdrawn from Bitcoin ETFs, and Ethereum ETFs shedding another $3.6 million. BlackRock’s IBIT saw no movement, reflecting overall market hesitation.
Crypto analyst Crypto Rover posted:
The Spot Bitcoin ETFs saw $157.8M outflow yesterday.
The Spot Ethereum ETFs saw $3.6M outflow.
INSTITUTIONS ARE REDUCING RISK AHEAD OF TODAY’S TARIFF ANNOUNCEMENT! pic.twitter.com/bLW5xPEj6U
— Crypto Rover (@rovercrc) April 2, 2025
This sudden shift highlights how closely institutions are watching U.S. policy moves, especially with the looming possibility of sweeping tariffs from Trump—policies that could hit global markets hard and add pressure to crypto valuations.
A Bloomberg report added fuel to the uncertainty, noting that “the White House has not reached a firm decision on their tariff plan,” amplifying the market’s anxiety.
The potential impact? Analysts warn that if Trump imposes wide-ranging tariffs, we could see stock and crypto crashes of up to 15%. As a result, many investors have hit pause on their crypto exposure and shifted to traditionally safer assets.
Gold Glitters While Crypto Confidence Fades
With digital assets under pressure, gold is once again the go-to safe haven. According to a Bank of America survey, 58% of institutional fund managers now prefer gold over Bitcoin in the face of rising trade tensions—just 3% still see Bitcoin as a viable alternative.
This aligns with the recent rise in tokenized gold, which has now surpassed $1.2 billion in value, as covered in our article Tokenized gold hits $1.2B as price surges past $3,000. This surge underscores how capital is quickly moving away from volatile digital assets to tangible commodities.
Adding to Bitcoin’s challenge is its perception among institutions during crises. A recent White House advisory warning on crypto-related corruption sparked more fears, pushing market participants to question the stability and regulatory future of the space. Read more on Trump’s crypto corruption warning that rattled investors just weeks ago.
Still, long-term Bitcoin holders aren’t fazed. Data from Santiment reveals that Bitcoin supply on exchanges has dropped to just 7.53%, the lowest since February 2018. When exchange supply falls, it usually means investors aren’t looking to sell—signaling long-term confidence.
Despite recent ETF outflows, this trend suggests a quiet build-up among long-term believers. It’s the kind of accumulation that has supported Bitcoin through previous downturns, including during times of political unpredictability like this.
Economic analyst Alex Krüger compared April 2 to a pivotal moment, saying:
Market views update
Markets crawl higher if headlines remain neutral to benign this week, then freeze as we await April 2nd, which is reciprocal tariffs day announcement or, as Trump called it, Liberation Day.
April 2nd is similar to election night. It is the biggest event of…
— Alex Krüger (@krugermacro) March 23, 2025
It’s clear—whether it’s Bukele meeting Trump to discuss Bitcoin or controversial decisions like BitMEX pardons, this administration is a wildcard for crypto. Each move stirs global markets, and institutions are choosing to protect their portfolios in advance.
Some of these same institutions are also reviewing their cybersecurity protocols after incidents like the UpCX hack, which exposed security flaws in emerging platforms—another reason risk-averse players are temporarily pulling back.
Bitcoin supply on exchanges. Source: Santiment – Techtoken
Bitcoin may be struggling to win safe-haven status today, but its core community still believes. And while the ETF outflows suggest short-term fear, the underlying on-chain data tells a very different story of long-term accumulation and resilience.
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