Bitcoin and ether prices surged as investors fled spot ETFs amid global trade policy uncertainty, despite a risk-reset on Wall Street.
Crypto Investors Flee Spot Bitcoin, Ether ETFs Amid Tariff-Driven Uncertainty
The withdrawals took place even as prices zoomed higher alongside a risk-reset on Wall Street.
Uncertainty Drives Investor Outflows
BlackRock’s IBIT led outflows in the spot BTC ETFs for the fifth consecutive day. The 11 bitcoin ETFs lost a net $127.2 million, with investors withdrawing $89.7 million from BlackRock’s IBIT alone. This marked another day of outflows, adding to the cumulative losses of $722 million over the past five days.
BlackRock is a global investment management company founded in 1988 by Larry Fink.
It has grown to become the largest asset manager in the world, with over $9 trillion in assets under management.
The company's flagship product is the iShares ETF, which offers investors diversified exposure to various asset classes and markets.
BlackRock plays a significant role in shaping global financial markets through its influence on corporate governance and environmental, social, and governance (ESG) policies.
Ether ETFs Also Feel the Pinch
The nine ether ETFs saw a net outflow of $11.2 million on Wednesday. The dwindling demand for these funds can be attributed to macroeconomic uncertainty caused by U.S.-China trade tensions and volatility in the bond markets, leading investors to sell every asset, including crypto ETFs, for cash.
The United States and China have one of the most significant trading relationships in the world, with bilateral trade valued at over $700 billion annually.
The US is China's largest trading partner, while China is the 'US's' largest trading partner outside North America.
The relationship is complex, with both countries relying heavily on each other for goods such as electronics and textiles.
However, trade tensions have risen in recent years due to issues like intellectual property theft and market access.
According to the US Census Bureau, in 2020, the 'US' exported $106 billion worth of goods to China, while importing $452 billion.
Market Rebound Despite Tariff Pause
Markets bounced back sharply later Wednesday after President Donald Trump announced a 90-day pause on tariffs for more than 75 nations. However, China, which recently imposed steep retaliatory tariffs on U.S. goods, did not get any relief as Trump hiked the total levy on Chinese goods to 125%. Despite this, bitcoin rose over 8% to $83,500, and ether jumped 13% to $1,770 alongside bigger gains in the altcoin market.
Wall Street‘s Tech-Heavy Index Sees Biggest Gains in Decades
The Nasdaq 100, a Wall Street tech-heavy index, jumped over 12%, its biggest single-day percentage gains in decades. This marked a risk-reset on Wall Street, which may have contributed to the outflows from spot bitcoin and ether ETFs.
The National Association of Securities Dealers Automated Quotations, commonly known as the NASDAQ, is a leading global stock exchange.
Founded in 1971, it is the second-largest stock exchange in the world by market capitalization.
The NASDAQ is home to over 3,000 listed companies, including many technology giants such as Apple, Amazon, and Google.
It operates as an electronic marketplace, providing real-time quotes and trading information for its listed securities.
