US spot Bitcoin, Ether ETFs shed $755M after crypto market crash
News Summary
US spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) experienced combined outflows exceeding $755 million on Monday, following record crypto market liquidations over the weekend. Bitcoin ETFs recorded a net outflow of $326.52 million, with Fidelity’s FBTC seeing $93.28 million in outflows and Grayscale’s GBTC $145.39 million. Ark 21Shares' ARKB and Bitwise's BITB also posted outflows of $21.12 million and $115.64 million, respectively, while BlackRock's IBIT bucked the trend with $60.36 million in inflows. Ether ETFs registered $428.52 million in outflows, led by BlackRock’s ETHA with $310.13 million, Grayscale’s ETHE with $20.99 million, and Fidelity’s FETH with $19.12 million. These outflows come after the crypto market saw record $20 billion in liquidations over the weekend. The trigger was US President Donald Trump's announcement of 100% tariffs on all Chinese imports starting November 1, in retaliation for Beijing's new export restrictions on rare earth minerals. Vincent Liu, CIO of Kronos Research, stated that investors are exercising caution and remaining on the sidelines, awaiting clearer macro direction, with market sentiment currently outweighing fundamentals. He suggests that resolutions to events like the US government shutdown or progress in trade negotiations could help restore confidence, potentially reigniting interest in both Bitcoin and Ether ETFs.
Background
The cryptocurrency market recently experienced record liquidations of $20 billion over the weekend, prompting investor risk aversion and leading to significant outflows from US spot Bitcoin and Ether ETFs. The immediate catalyst for this market turmoil was US President Donald Trump's announcement of imposing 100% tariffs on all Chinese imports starting November 1. This move is a direct retaliation for China's recent export restrictions on rare earth minerals, which are critical for high-tech industries and where China holds a dominant global supply position. This tariff escalation marks a significant deepening of US-China trade tensions.
In-Depth AI Insights
What are the real strategic intentions behind the Trump administration's escalating tariffs on China? - Superficially a retaliatory measure, the deeper intent may be to leverage economic pressure to force concessions from China on critical strategic industries (like rare earths), ensuring US supply chain security and technological hegemony. - Given Trump's