Bitcoin ETFs (exchange-traded funds) are losing money this week as investors play it safe ahead of a big announcement from former President Trump about new trade tariffs. Many are holding back on big investments, unsure how these new policies will affect the economy and financial markets.
Bitcoin ETFs Are Losing Money
According to Farside Investors, Bitcoin ETFs have seen two straight days of withdrawals, starting on Monday, April 1. Investors took out:
- $60.6 million on Monday, with big funds like Bitwise (BITB), Ark Invest (ARKB), and WisdomTree (BTCW) being hit the hardest.
- $158 million on Tuesday, with Bitwise and Ark Invest losing the most money.
- Even BlackRock’s IBIT, the biggest Bitcoin fund, got zero new investments on April 1, which is unusual.
- Ethereum ETFs also saw losses of $3.6 million.
Analyst Crypto Rover explained why this is happening:
“Bitcoin ETFs lost $157.8 million yesterday, and Ethereum ETFs lost $3.6 million. Big investors don’t want to take risks before Trump’s tariff announcement.”
Why Are Investors Taking Money Out?
Trump is set to announce new trade tariffs on April 2, and people are worried it could cause a trade war. If that happens, the stock market and crypto prices could drop by 10-15%.
The problem is, no one knows exactly what the tariffs will include. Even the White House hasn’t made a final decision, according to a Bloomberg report. This uncertainty is making investors nervous.
Economist Alex Krüger compared April 2 to a major election night, calling it the biggest financial event of the year:
“This is 10 times more important than any Federal Reserve meeting. Anything could happen.”
Investors Are Choosing Gold Over Bitcoin
Because of all this uncertainty, big investors are moving their money into gold instead of Bitcoin. A Bank of America survey found that:
- 58% of fund managers think gold is the best investment in times of trouble.
- Only 3% prefer Bitcoin as a safe option.
This isn’t surprising. In the past, when the economy was shaky, investors bought gold because it has a long history of holding value. For example, during the US-China trade war in 2018, gold prices went up by 20%, while Bitcoin remained unpredictable.
Bitcoin is still too risky for some big investors. It rises and falls in price too quickly, and during a financial crisis, it’s harder to sell Bitcoin than gold.
Bitcoin Holders Still Believe in the Long-Term
Even though some investors are pulling out, Bitcoin’s long-term supporters are not worried. Data from Santiment shows that the amount of Bitcoin available for sale on exchanges is the lowest since 2018—only 7.53% of all Bitcoin is sitting in exchange wallets.
This means more people are holding onto their Bitcoin instead of selling, which is often a good sign for future prices.
What’s Next?
Trump’s big announcement is coming soon, and investors are waiting to see what happens. If the tariffs are too harsh, markets could drop even more. But if they are not as bad as expected, Bitcoin and stocks could bounce back quickly.
For now, most investors are playing it safe, pulling their money from Bitcoin ETFs and sticking with gold—but Bitcoin’s true believers aren’t giving up.
