After 10 days of consistent inflows, U.S. spot Bitcoin ETFs hit a bump on May 29. Investors pulled back as uncertainty around Donald Trump’s trade policies rattled markets.
According to SoSoValue, U.S.-listed spot Bitcoin ETFs saw a net outflow of $358.65 million, the first daily loss since mid-May. This shift follows an impressive run that brought over $4.2 billion into these funds in just 10 days.
Fidelity, Grayscale Lead Withdrawals
Among the biggest outflows:
- Fidelity’s FBTC saw the largest redemption at $166.32 million.
- Grayscale’s GBTC followed with $107.53 million in withdrawals.
- ARKB and BITB also saw significant exits, losing $89.22 million and $70.85 million, respectively.
Meanwhile, other funds such as BTCO, HODL, BRRR, and EZBC faced smaller combined outflows of $49.83 million.
Despite the broader sell-off, BlackRock’s IBIT stood out with $125.09 million in net inflows, indicating that some investors see the dip as a buying opportunity.
May Still Bullish for Bitcoin ETFs
Even with the pullback, May remains strong for Bitcoin ETFs. Net inflows are estimated at $5.85 billion, almost double April’s total.
To put that in context:
- February and March recorded net outflows of $3.56 billion and $767.91 million, respectively.
- Over the past five weeks, Bitcoin ETFs have gained nearly $9 billion.
- In contrast, gold-backed ETFs lost over $2.8 billion, suggesting a shift in investor preference from gold to Bitcoin as a store of value.
Trump’s Tariffs Trigger Market Jitters
The sudden reversal came amid renewed uncertainty around Trump’s tariff policies. A U.S. federal appeals court reinstated his tariffs on the European Union, just hours after another court had ruled them unlawful.
The Biden administration is now expected to escalate the matter to the Supreme Court. This legal back-and-forth has left investors uneasy, especially as Trump’s “reciprocal tariffs” could potentially increase costs and fuel inflation
Bitcoin Still Tied to Broader Markets
Experts suggest the current movement reflects a market correction, not a reversal.
“Bitcoin is still tracking U.S. tech indices,” said Ruslan Lienkha of YouHodler, pointing to interest rates and liquidity as key drivers.
However, he noted that as Bitcoin matures, this correlation could weaken, allowing it to behave more independently in the future.
“BTC is likely to stay within this range for now, possibly building a foundation for the next rally,” he added.
