On Tuesday, investors withdraw $326 million from the US Spot Bitcoin Exchange Trade Fund (ETF) since March 11, marking its largest single-day outflow since March 11. This latest pullback is as traders respond to an escalation of tensions between the US and its trading partners over President Trump’s new tariffs. The implementation of tariffs, such as a 104% obligation on China’s imports, has created uncertainty in the global market, leading investors to risk their portfolios. BlackRock’s IBIT was the most intense hit, losing $253 million on the third day of its release.
The leak continued the Bitcoin ETF’s negative winning streak. Those losses fell to $75,100 on Tuesday, coinciding with a decline in Bitcoin prices. This was the lowest point in five months. Analysts attribute the spill to a combination of risk aversion and a broader market response to Trump’s tariffs.
The Bitcoin ETF was not the only asset facing losses. Ethereum spot ETF also saw the outflow on Tuesday, with $3.3 million being withdrawn from the funds. The greatest decline came from Fidelity’s Ethereum Fund, which contributed to Ethereum’s overall struggle. Ethereum prices are below $1,450, and it continues to be a downward trend in which assets have lost value compared to Bitcoin over the past five years. The ETH/BTC ratio fell to its five-year low, reflecting on the ongoing weakness in Ethereum prices against Bitcoin.
Despite these challenges, Ethereum’s Layer-2 networks such as Arbitrum and Optimism have seen increased chain locked activity and value. These networks have helped Ethereum expand, despite the stagnation of the mainnet, and have led to some growth. Ethereum’s transaction fees, which have fallen to their lowest levels recently since August 2024, point to a reduced network congestion.
In a contrasting move, 21Share announced the launch of its fully supported Dogecoin Exchange-Traded product (ETP) on six Swiss exchanges. Started in partnership with the Dogecoin Foundation, Dogecoin ETP marks a key step in Meme-inspired cryptocurrency to attract more institutional attention. This launch comes as Dogcoin gains recognition, even if Bitcoin and Ethereum are struggling with market pressure.
As the effects of the tariff war unfold, the market remains extremely unstable. Investors are closely watching the challenges of Bitcoin performance and Ethereum, which poses central challenges in this uncertain environment.