U.S. Bitcoin ETFs Lose $5.4 Billion in Five Weeks

U.S. Bitcoin exchange-traded funds (ETFs) have experienced significant outflows, recording over $5.5 billion in withdrawals over five weeks, marking the longest streak since their debut in January 2025. This trend is largely attributed to escalating geopolitical tensions, particularly regarding tariffs introduced by President Donald Trump, which have contributed to a broader retreat from riskier investments. Bitcoin's price has also faced pressure, dropping around 21% in recent months, further influencing investor sentiment. The outflows have been particularly pronounced in major ETFs, with Fidelity's FBTC and BlackRock's IBIT leading the way in withdrawals. Despite this negative trend, there have been slight year-to-date inflows for crypto ETPs, indicating some investors are still interested in the market. Analysts suggest that these circumstances are prompting a shift towards traditional assets like gold, as investors become more cautious amidst market uncertainty.