US Trade Tariffs Trigger $240 Million Crypto Outflows Last Week

Crypto ETPs (exchange-traded products) saw a significant setback last week, as outflows reached $240 million.

The turnout follows escalating trade tensions in the US, sparking investor caution amidst President Donald Trump’s sweeping new import tariffs.

Crypto Outflows Hit $240 Million Last Week

According to the latest CoinShares report, crypto outflows totaled $240 million last week, primarily driven by fears that trade disruptions could stall global growth.

“Digital asset investment products saw outflows totaling $240m last week, likely in response to recent US trade tariff news that poses a threat to economic growth,” CoinShares’ James Butterfill noted.

Bitcoin alone accounted for $207 million of the outflows, significantly denting its year-to-date (YTD) inflow volume, which now stands at $1.3 billion.

Ethereum products also suffered, posting $37.7 million in outflows. Solana and Sui followed with $1.8 million and $4.7 million, respectively.

This marks a sharp reversal from the previous week’s report, which had seen $18 million in altcoin inflows, ending a four-week losing streak.

Crypto Outflows Last Week. Source: CoinShares

The shift in sentiment reflects deepening investor uncertainty across all asset classes. While the sell-off was widespread, the US led the outflows with $210 million. This supports the argument that President Trump’s tariffs contributed to the growing market uncertainty.

BeInCrypto reported that Trump plans reciprocal tariffs. The plan, announced as part of the president’s “America First” trade agenda, includes two key components. The first was a baseline 10% tariff on all imports into the US starting April 5, affecting nearly all trading partners.

Second, higher “reciprocal” tariffs, ranging from 11% to 50%, will target specific countries with significant trade surpluses with the US or high barriers to American goods. These escalated rates, affecting around 57 to 90 countries, will start on April 9.

In this regard, China faces a 34% reciprocal tariff on top of an existing 20% tariff, totaling 54%. Meanwhile, the European Union faces 20%, Japan 24%, and Vietnam up to 46%.

Against this backdrop, local media reported that China called out the US for economic bullying.

“China accuses the US of unilateralism, protectionism, and economic bullying with tariffs,” analyst Jackson Hinkle remarked.

US Bitcoin ETFs See $172 Million in Outflows.

Meanwhile, institutional retreat was most evident in the US spot Bitcoin ETF (exchange-traded fund) market. These financial instruments posted $172.89 million in net outflows last week, ending a two-week inflow streak that had added nearly $941 million.

According to data from SoSoValue, most redemptions occurred across four of the five trading days, reflecting the scale of investor unease.

Bitcoin ETF Outflows. Source: SoSoValue

Data on Farside Investors corroborates the outlook, showing Grayscale’s GBTC led the pack with $95.5 million in outflows, followed by WisdomTree’s BTCW at $44.6 million.

Other ETFs, including BlackRock’s IBIT, Bitwise’s BITB, ARK 21Shares’ ARKB, and VanEck’s HODL, reported redemptions ranging from $4.9 million to $35.5 million.

Despite a strong mid-week inflow of $220.76 million on April 3, it was not enough to counter the heavy losses sustained on other days. Monday through Friday saw consistent outflows, with Tuesday alone recording $157.64 million in redemptions.

Bitcoin ETF Flows Last Week. Source: Farside investors

Ethereum ETFs were also not spared, marking six consecutive weeks of outflows totaling nearly $800 million since February. Last week alone, Ethereum funds saw $49.93 million in redemptions, reinforcing the narrative of widespread risk aversion.

Still, some bright spots emerged. Franklin Templeton’s EZBC, Fidelity’s FBTC, and Grayscale’s newer spot, Bitcoin Trust, collectively saw $61.8 million in inflows. This suggests selective institutional interest remains.

CryptoQuant CEO Ki Young Ju addressed the broader panic, emphasizing that institutional flows still rely heavily on on-chain settlements.

“Dismissing on-chain data due to paper Bitcoin is misguided; it’s essential for understanding market supply and demand dynamics,” he said on X (Twitter).

As the second week of Q2 begins, investors monitor whether the pullback represents a temporary correction. According to Standard Chartered Bank, Bitcoin could rebound as early as Friday. Meanwhile, sentiment suggests it could start a deeper structural shift in crypto’s institutional narrative.

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