Bitcoin (BTC) spot exchange-traded funds (ETFs) faced significant pressure amid uncertainty caused by the ongoing global trade war. Between March 28 and April 8, these ETFs experienced net outflows totaling $595 million, according to Farside Investors data. Notably, even after most US import tariffs were temporarily lifted on April 9, the funds still recorded an additional $127 million in net outflows.
This situation has left traders questioning the reasons behind the continued outflows and why Bitcoin’s rally to $82,000 on April 9 failed to boost confidence among ETF investors.
Spot Bitcoin ETF net flows. Source: Farside Investors
Corporate credit risk could be driving investors away from BTC
One factor contributing to diminished interest is the rising likelihood of an economic recession. “What you can clearly observe is that liquidity on the credit side has dried up,” Lazard Asset Management global fixed income co-head Michael