Bitcoin ETFs Suffer $772M Outflow Amid Investor Fear of Tariff-Driven Inflation

Spot Bitcoin ETFs See $772M Outflow as Investors Prepare for Tariff-Driven Inflation

The past week has seen a significant outflow of funds from spot Bitcoin exchange-traded funds (ETFs), with investors pulling out a staggering $772 million from these products. This exodus is believed to be driven by concerns over the potential impact of tariffs on inflation.

As the United States and China continue to engage in a trade war, investors are growing increasingly nervous about the potential consequences for the global economy. The threat of tariffs has led to concerns that inflation could rise sharply, making safe-haven assets like gold and Bitcoin more attractive.

The data, which was compiled by ETF provider VanEck, shows that the VanEck Bitcoin ETF, which tracks the performance of the MVIS CryptoCompare Bitcoin Benchmark Index, saw a net outflow of $772 million over the past seven days. This represents a significant increase from the previous week, which saw a net inflow of $14 million.

Other spot Bitcoin ETFs, such as the Bitwise 10 Large Cap Crypto Index Fund, also saw significant outflows, with investors pulling out $250 million from the fund over the past week.

The outflows from spot Bitcoin ETFs are likely to be driven by investors seeking to reduce their exposure to the cryptocurrency market in the face of rising inflation concerns. As the trade war between the US and China continues to escalate, investors are becoming increasingly risk-averse, and this is likely to continue to drive demand for safe-haven assets like Bitcoin.

In recent weeks, Bitcoin has seen a significant surge in price, with the cryptocurrency rising by over 15% in the past month. This has led to increased interest in Bitcoin ETFs, which allow investors to gain exposure to the cryptocurrency without having to buy and hold it directly.

However, with inflation concerns on the rise, investors may be looking to reduce their exposure to the cryptocurrency market and seek out safer assets. This could lead to further outflows from spot Bitcoin ETFs in the coming weeks, as investors seek to reduce their risk exposure.

In the meantime, the outflows from spot Bitcoin ETFs are likely to continue to drive demand for the cryptocurrency itself, as investors look to gain exposure to the asset without having to buy and hold it directly. This could lead to further price increases for Bitcoin, as investors seek to capitalize on the cryptocurrency's potential as a safe-haven asset.