US spot bitcoin ETFs (exchange-traded funds) saw $326.27 million in net outflows on Tuesday, marking their largest daily withdrawal since March 11. The move extended a four-day streak of negative flows and reflects growing investor caution amid escalating trade tensions triggered by President Donald Trump’s sweeping new tariffs.

Tariffs Fuel Risk-Off Sentiment

The outflows from spot Bitcoin ETFs followed the implementation of a new round of US tariffs, including a 104% duty on Chinese imports, which took full effect at midnight on Wednesday.

The market response has been swift and risk-averse, with traders pulling back from volatile assets like bitcoin as they assess the broader economic impact.Major US stock indexes echoed this caution. On Tuesday, the Dow Jones Industrial Average fell 0.84%, the S&P 500 dropped 1.57%, and the Nasdaq Composite declined 2.15%.

Leading Bitcoin ETFs See Substantial Withdrawals

BlackRock’s iShares Bitcoin Trust (IBIT) led the outflows recorded by Bitcoin ETFs with $252.9 million leaving the fund. Other products, including Ark and 21Shares’ ARKB, Bitwise’s BITB, Franklin Templeton’s EZBC, and Grayscale’s GBTC and Mini Trust, also reported notable losses. Overall trading volume for spot Bitcoin ETFs slumped to $3 billion on Tuesday, down sharply from $6.6 billion the previous day.

Global Markets React to Escalating Trade Tensions

The tariff news rippled through global markets. In Asia, Japan’s Nikkei 225 dropped 3.9%, while China’s Shanghai Composite Index rose 1.3%. South Korea’s Kospi fell 1.4%, reflecting mixed sentiment as investors reacted to the evolving situation.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.