Bitcoin ETFs Hit a Wall: Trump Tariffs Spark Investor Panic! 😱

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Well, well, well! It seems that U.S. spot Bitcoin ETFs decided to take a little vacation on May 29, abruptly ending their impressive 10-day inflow streak. Why, you ask? Because investors suddenly remembered that Donald Trump is still out there, stirring the pot with his trade policies like a chef who’s just discovered a new spice. 🌶️

According to the ever-reliable data from SoSoValue, a staggering \$358.65 million decided to pack its bags and leave the 12 U.S.-listed spot Bitcoin ETFs on that fateful day. This marked the first net outflow since mid-May, which is like saying it’s the first time you’ve seen your neighbor without their lawn flamingos. Just a few days prior, these funds had welcomed over \$4.2 billion in a mere 10 days. Talk about a rollercoaster ride! 🎢

Leading the charge out the door was Fidelity’s FBTC, which saw \$166.32 million in investor redemptions. Following closely behind was Grayscale’s GBTC, with \$107.53 million withdrawn. ARK 21Shares’ ARKB and Bitwise’s BITB also joined the exodus, losing \$89.22 million and \$70.85 million, respectively. It’s like a sad little parade of funds waving goodbye. 👋

Other funds, such as Invesco’s BTCO, VanEck’s HODL, Valkyrie’s BRRR, and Franklin Templeton’s EZBC, also experienced smaller outflows, totaling a combined \$49.83 million. It’s almost as if they were all in on a secret that the rest of us weren’t privy to.

But hold your horses! Not everything was doom and gloom. BlackRock’s IBIT decided to be the life of the party, recording \$125.09 million in inflows. Clearly, some investors still see this pullback as a golden opportunity to snag a bargain. 🤑

Despite the sharp one-day outflow, May has been a bullish month for Bitcoin ETFs, with net inflows reaching around \$5.85 billion—nearly double what we saw in April. For context, February and March were like the sad, forgotten months of a bad sitcom, with net outflows of \$3.56 billion and \$767.91 million, respectively. It’s clear that investor appetite has been ravenous lately! 🍽️

Interestingly, while Bitcoin ETFs have attracted nearly \$9 billion over the last five weeks, traditional gold-backed ETFs have been shedding more than \$2.8 billion in outflows. This trend suggests that more folks are starting to view Bitcoin as a legitimate store of value and a hedge against inflation—roles that gold has held for centuries. Who knew the shiny metal would have to share the spotlight? 💰

As for what triggered this sudden shift, many point to the ongoing tariff saga involving our favorite former President, Trump. A federal appeals court reinstated Trump’s tariffs on the European Union just hours after a lower trade court ruled them unlawful. Now, the administration is expected to ask the Supreme Court to put that ruling on hold, potentially as early as Friday. Because why not keep everyone on their toes? 🤹‍♂️

Markets react

In response, Bitcoin’s (BTC) price dipped, touching a session low of \$105,332 on May 30 before recovering slightly to just above \$106,000. That’s a 1.7% decline in 24 hours, although the top cryptocurrency still sits within 5% of its all-time high of \$111,891, hit earlier this month. It’s like watching a high-wire act—thrilling, but you can’t help but hold your breath! 😬

Crypto-related stocks had a mixed day. Coinbase (COIN) slid 2.14%, while MicroStrategy (MSTR) managed a 1.7% gain. Bitcoin miners also took a hit, with Bitfarms (BITF), Bit Digital (BTBT), CleanSpark (CLSK), and Greenidge (GREE) all dropping by around 3-5%. It’s like a game of musical chairs, and everyone’s scrambling for a seat! 🎶

Meanwhile, traditional U.S. equities also gave back most of the gains they saw after the initial court ruling blocking Trump’s tariffs. With legal uncertainty still looming, markets across the board seem to be shifting into wait-and-watch mode. It’s like everyone’s waiting for the next episode of a soap opera—will there be a cliffhanger? 📺

“The recent activity appears more indicative of a correction rather than a bearish reversal,” said Ruslan Lienkha, chief of markets at YouHodler, adding that Bitcoin will likely continue tracking major U.S. tech indices in the medium term due to their shared sensitivity to macroeconomic factors like interest rates and liquidity. Sounds like a fancy way of saying, “Hold on tight, folks!”

However, he added that “this correlation may gradually weaken over time” as Bitcoin continues to evolve into a more mature asset class with its own unique market drivers. So, in other words, Bitcoin is growing up and might not need to hang out with the tech stocks forever. 🎓

“Given these dynamics, it is likely that BTC will continue to trade within this range for some time, potentially building a solid foundation for the next leg higher toward a new all-time high.” So, keep your eyes peeled, folks! The Bitcoin saga is far from over! 🚀

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2025-05-30 10:21