In the United States, Bitcoin ETFs experienced a record outflow of $5.5 billion over the past five weeks, marking the longest selling streak. Bitcoin exchange-traded funds (ETFs) traded in the U.S. have witnessed their longest streak of outflows since their launch in January 2024. It was reported that over the last five weeks, investors pulled out assets exceeding $5.5 billion from 12 different Bitcoin ETFs. This significant wave of outflows began with Donald Trump’s return to the White House and is viewed as part of a broad sell-off in risky assets. The outflows from Bitcoin ETFs are largely associated with uncertainties surrounding Trump’s economic and trade policies. Trump’s new customs tariffs and statements on global trade wars have led investors to shy away from traditional risky assets, and this trend has spilled over to Bitcoin.
In the crypto markets, there has been an expectation during Trump’s presidency that he might offer a more positive regulatory framework for digital assets. However, investors’ recent response indicates that trade policies and widespread macroeconomic fluctuations are dampening the interest in Bitcoin. Bitcoin has been facing significant pressure since the beginning of 2025 after reaching record levels in 2024 following Trump’s election victory in November. Bitcoin has lost around 12% in value since the start of the year and was trading at $83,500 as of 10 a.m. London time. Greg Magadini, the derivatives director at Amberdata specializing in crypto derivatives, stated in a note to investors that “Bitcoin and cryptos in general are now entirely driven by macroeconomic developments.” Magadini emphasized that Bitcoin will continue to move with risky assets and the probability of diverging from traditional financial markets in the short term is low.
What Do Bitcoin ETF Outflows Mean?
Bitcoin ETFs are regarded as one of the most crucial tools increasing institutional investors’ access to the crypto market. However, the recent outflows indicate that major investors are changing their risk perceptions towards Bitcoin and starting to restructure their portfolios. This development could create a liquidity issue in the crypto markets and make Bitcoin price movements more volatile. While the duration of this outflow trend in Bitcoin ETFs remains uncertain, market analysts predict that Bitcoin’s direction will depend on the U.S. economic policies and overall risk appetite in global markets. Investors are currently focused on the steps the Trump administration will take regarding cryptocurrency regulations and trade policies in the coming period.