Investment in Bitcoin ETFs stalls following a 10-day influx, as economic uncertainties triggered by Trump's tariff disputes unsettle investors.
U.S. Bitcoin ETFs Suffer Net Outflows on May 29 amid Trade Policy Uncertainty
On May 29, U.S.-listed spot Bitcoin ETFs experienced a net outflow of $358.65 million, marking the first daily outflow since mid-May. This reversal follows a 10-day inflow streak that saw more than $4.2 billion flow into these funds.
Data from SoSoValue reveals that Fidelity's FBTC led the outflows with $166.32 million in redemptions, followed by Grayscale's GBTC with $107.53 million withdrawn. ARK 21Shares' ARKB and Bitwise's BITB lost $89.22 million and $70.85 million, respectively. Other funds, including Invesco's BTCO, VanEck's HODL, Valkyrie's BRRR, and Franklin Templeton's EZBC, also saw minor outflows, amounting to a combined $49.83 million.
However, BlackRock's IBIT recorded $125.09 million in inflows, indicating that some investors viewed the pullback as a buying opportunity.
May has still been a bullish month for Bitcoin ETFs, with net inflows reaching approximately $5.85 billion, nearly double the inflows seen in April. Over the last five weeks, spot Bitcoin ETFs have attracted nearly $9 billion, compared to traditional gold-backed ETFs, which have shed more than $2.8 billion in outflows.
The latest outflows may be attributable to fresh uncertainty surrounding former President Trump's trade policy. A federal appeals court reinstated Trump's tariffs on the European Union just hours after a lower trade court ruled them unlawful. The administration is now expected to seek a stay from the Supreme Court, potentially as early as Friday.
Trump's "reciprocal tariff" approach has been a key point of tension with allies and trading partners, raising concerns that a return to aggressive tariff policies could drive up costs and reaccelerate inflation.
In response, Bitcoin's price dipped, touching a session low of $105,332 on May 30 before recovering slightly to just above $106,000. The top cryptocurrency still remains within 5% of its all-time high of $111,891, reached earlier this month.
Crypto-related stocks had a mixed day: Coinbase (COIN) declined by 2.14%, while MicroStrategy (MSTR) managed a 1.7% gain. Bitcoin miners also took a hit, with Bitfarms (BITF), Bit Digital (BTBT), CleanSpark (CLSK), and Greenidge (GREE) all dropping by around 3-5%.
Traditional U.S. equities also gave back most of the gains they saw after the initial court ruling blocking Trump's tariffs, reflecting a cautious market stance amid continuing legal uncertainty.
Ruslan Lienkha, chief of markets at YouHodler, commented that the recent activity appears more indicative of a correction rather than a bearish reversal. He suggested that Bitcoin will likely continue to track major U.S. tech indices in the medium term due to their shared sensitivity to macroeconomic factors like interest rates and liquidity. However, he noted that this correlation could weaken over time as Bitcoin evolves into a more mature asset class with its own unique market drivers.
- Despite the net outflow on May 29, Bitcoin ETFs still saw significant inflows in May, reaching approximately $5.85 billion, nearly double the inflows seen in April.
- Amid the trade policy uncertainty, data from SoSoValue reveals that Fidelity's FBTC led the outflows with $166.32 million in redemptions, followed by Grayscale's GBTC with $107.53 million withdrawn.
- The latest outflows may be attributable to fresh uncertainty surrounding former President Trump's trade policy, as a federal appeals court reinstated Trump's tariffs on the European Union.
- In contrast to Bitcoin ETFs, traditional gold-backed ETFs have shed more than $2.8 billion in outflows over the last five weeks.
- Ruslan Lienkha, chief of markets at YouHodler, suggested that Bitcoin will likely continue to track major U.S. tech indices in the medium term due to their shared sensitivity to macroeconomic factors, but noted that this correlation could weaken over time as Bitcoin evolves into a more mature asset class with its own unique market drivers.
