Bitcoin ETFs Hit by $235M Outflow Amid Global Tariff Turmoil

Bitcoin ETFs saw a sharp reversal on February 3, with a $235 million net outflow, breaking a four-day streak of inflows that had seen a total of $1 billion.

This came after Bitcoin fell to a three-week low, dipping briefly below $92,000, a significant move that reflected broader market uncertainties.

The inflows from the previous week were a stark contrast, with ETFs enjoying daily deposits averaging $250 million. This sudden shift underscores how vulnerable the market is to external factors, especially political and economic events.

Fidelity’s FBTC led the charge in outflows, losing $177.6 million, while Grayscale’s GBTC saw a smaller dip of $8.6 million. Other funds, including Bitwise and ARK, experienced losses of $5.5 million and $50.7 million, respectively.

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However, several funds like BlackRock’s IBIT and Invesco’s BTCO saw no changes, signaling investor hesitance. Only Grayscale’s BTC saw any gains, attracting a modest $8 million.

The major trigger for the market turmoil was President Trump’s announcement of tariffs on goods from Canada, Mexico, and China. While the tariffs on Canada and Mexico were delayed, the one on China proceeded.

The news rocked global markets, with stock indices falling and many investors moving away from riskier assets like Bitcoin due to concerns about economic instability and potential retaliatory actions from affected countries.