Traders may have cheered a sharp rebound in crypto prices, but that didn’t stop investors from pulling funds out of major U.S.-listed bitcoin (BTC) and ether (ETH) ETFs.
On Wednesday, as President Trump paused his aggressive tariff strategy for most countries—excluding China—risk assets staged a major comeback. Bitcoin surged past $83,000 with an 8% gain, and ether climbed 13% to around $1,770. Wall Street also roared back, with the Nasdaq 100 jumping over 12% in its biggest single-day move in years.
Yet crypto ETFs saw another day of heavy redemptions. The 11 spot bitcoin funds recorded net outflows of $127.2 million, including nearly $90 million from BlackRock’s flagship IBIT product, according to Farside Investors. That marks five straight days of redemptions, totaling more than $720 million. Ether ETFs weren’t spared either, shedding another $11.2 million on Wednesday.
Despite a bullish tape, the flows signal broader unease in financial markets. Analysts point to ongoing U.S.-China tensions and bond market instability as key drivers behind the selling, suggesting macro-focused investors are pulling capital from even high-performing assets amid a flight to cash.
Although markets rebounded on Trump’s tariff pause for over 75 nations, investors remain cautious with China still in the crosshairs, now facing a 125% levy on its exports to the U.S.
Until more clarity emerges on trade negotiations and macro conditions stabilize, ETF flows could remain disconnected from short-term price momentum.
