$812M has left Bitcoin ETFs in April despite Bitcoin price recovery post‑tariff pause.
Institutions are shifting to bonds and AI/tech funds amid risk‑off sentiment.
Regulatory delays and media FUD also fuel cautious ETF positioning.
Bitcoin ETFs have registered significant fund withdrawals even as spot Bitcoin (BTC) price regained ground following President Trump’s 90‑day suspension of reciprocal tariffs.
The temporary tariff relief helped stabilize global markets, fueling a Bitcoin price rebound that saw it climb back toward the mid‑$80,000s.
However, institutional investors have continued to pull money out of spot Bitcoin ETFs, culminating in a dramatic $171.10 million net outflow on April 17, according to Coinglass data.
The most affected ETFs are Fidelity’s FBTC and ARK Invest’s ARKB, each of which has seen over $113 million in outflows.
BlackRock’s IBIT, however, continues to enjoy modest inflows with $30.60 million inflows as of April 17, 2025.
Bitwise’s BITB, VanEck’s HODL, and Grayscale Bitcoin Mini Trust ETF (BTC) have also weathered the storm with $12.8M, $6.7M, $2.4M, and $3.4M inflows respectively.
Month‑to‑date flows show that more than $800 million departed Bitcoin ETFs in early April, following $767 million in March.
This extended streak of weekly outflows eclipses even the heaviest withdrawal phases seen since these products debuted in January 2024.
Why the huge Bitcoin ETFs outflows?
Notably, this trend underscores a broader risk‑off sentiment among professional investors reluctant to reallocate capital into volatile digital assets.
Surging US interest rates have rendered government bonds more appealing, prompting capital rotation out of crypto ventures.
Concurrently, profit‑taking after Bitcoin’s late‑2024 rally motivated holders to crystallize gains, dampening demand for ETF exposure.
Investors are also contending with fractured regulatory signals, as promised crypto‑friendly legislation remains stalled in Congress.
Confusion surrounding token unlock schedules for structured Bitcoin products exacerbates fears of sudden supply surges.
Moreover, strong inflows into AI and tech‑focused exchange‑traded funds have lured momentum‑driven capital away from crypto.
Persistent media rhetoric around a “Bitcoin ETF exodus” further compounds negative sentiment and amplifies withdrawal pressures.
Bitcoin miners have also felt the squeeze, with March profitability down 7.4% as average fees and prices cooled although leading miners like Marathon Digital and CleanSpark maintained robust production and expanding hash rates despite shrinking margins.
Tax‑loss harvesting strategies and quarter‑end portfolio rebalancing have also applied technical selling pressure on ETF shares.
The interplay of these forces paints a nuanced picture: spot Bitcoin prices can recover while ETF flows simultaneously languish.
Investors now face a delicate balancing act between capturing crypto’s upside potential and managing exposure to its inherent volatility.
A weaker US dollar amid shifting Federal Reserve forecasts has provided some tailwind for Bitcoin valuations in recent weeks.
However, the comparative stability and yield of US Treasuries continue to attract institutional allocations away from high‑beta crypto instruments.
As the market digests these divergent signals, the tug of war between price recovery and Bitcoin ETFs fund outflows may define next Bitcoin (BTC) maturation phase.
The post Why Bitcoin ETFs are seeing outflows even as BTC price recovers appeared first on CoinJournal.
