Bitcoin ETFs Bleed $157M as Tariff Jitters Shatter 6-Week Inflow Streak

Wall Street’s crypto honeymoon hits a snag—Bitcoin ETFs just coughed up $157 million in a single week as traders panic-sell on tariff rumors. The streak is dead.

Risk-Off Mode Activated

After six straight weeks of bullish inflows, the ETF cash spigot flipped to red. Blame Washington’s latest trade war whispers—because nothing tanks markets faster than politicians playing economic chicken.

Silver Lining Playbook

This dip smells like classic overreaction. Institutions won’t unlearn Bitcoin’s scarcity math because of some import taxes. Watch for the rebound when hedge funds finish repositioning—their algos always buy the fear.

Funny how ’diversified portfolios’ suddenly mean 100% correlated risk assets when macro winds shift. Maybe next they’ll rediscover gold... or actual diversification.

Source: Soso Value

Over the same period, BTC recovered from $84k to over $110k on the charts. However, the outflows seen last week dragged BTC below $110k again. 

Tariff fears reverse BTC ETF flows

Reacting to the reversal of the Spot BTC ETFs flows, CoinShares’ Head of Research James Butterfill said, 

“The week began with strong inflows for Bitcoin, this reversed mid-week following the New York Court decision to declare US tariffs as illegal, ending the week with minor outflows of US$8m.”

The ETF outflows were led by Ark 21Shares  and Fidelity funds. 

Source: CoinShares

Last week, President Donald TRUMP claimed that China violated the preliminary trade arrangement made in May. As a result, the U.S doubled Chinese steel imports to a 50% tariff and expanded tech sanctions. 

In response, on 2 June, China dismissed the accusations but warned of taking measures to protect its interests. This warranted investor concerns over tariff wars in June. 

Although there were reports of potential phone talks on the issue this week, the macro headline may remain a key factor for bitcoin going forward. 

Commenting on the macro outlook, crypto trading firm QCP Capital stated, 

“Tariff tensions will likely drive the macro narrative through June, with major policy decisions expected only after July 8. Until then, the market may stay on pause.”

The firm painted a risk-off outlook and added, 

“Volatility on the frontend is compressing, risk reversals are normalising, and perp funding has gone flat. These shifts point to muted price action ahead.”

According to QCP, BTC may remain range-bound in $100k-$110k. 

Meanwhile, Glassnode highlighted that profit-taking may stall the rally. Especially if new buyers fade while other traders begin locking in more gains. 

“If new demand holds, the BTC rally could continue. If it fades, the lack of momentum support and rising profit-taking could lead to short-term consolidation, worth monitoring cohort rotation.”

Source: Glassnode

At press time, demand from new buyers was significant (green), while profit-taking was relatively modest. 

Overall, Bitcoin appeared to be in great condition, despite the risk of profit-taking. However, any macro-driven market rout could accelerate the sell-offs.