Market Chaos Causes Investors to Dump Bitcoin ETFs
About $252 million was pulled from BlackRock’s IBIT. This its the largest single-day outflow since February. Despite initial resilience, Bitcoin eventually followed traditional markets downward due to broader liquidity concerns. Meanwhile, ETF developments are not slowing down as Cboe BZX Exchange submitted a proposal to list a Sui (SUI) ETF. If approved, this will be the first ETF in the US to hold SUI. BlackRock also recently partnered with Anchorage Digital to boost its crypto custody infrastructure.
US Tariff Turmoil Triggers Bitcoin ETF Exodus
Bitcoin's relationship with traditional financial markets is once again being tested as global investors pull away from risk assets in response to escalating US trade tensions. On April 8, US-listed spot Bitcoin ETFs recorded their fourth straight day of outflows. Over $326 million was pulled out, according to Farside Investors.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced the largest outflow after shedding more than $252 million. This was its largest single-day loss since Feb. 26.
Bitcoin ETF flow (Source: Farside Investors)
This wave of outflows was part of a dramatic reaction in traditional markets to US President Donald Trump’s announcement on April 2 of new reciprocal import tariffs. The policy shift sparked a historic $5 trillion sell-off in the S&P 500 over just two days. Despite this turmoil, Bitcoin initially showed some resilience by staying above the $82,000 level before tumbling below $75,000 on Sunday, April 6.
According to Lennix Lai, global chief commercial officer at OKX, the lag between the equity market drop and Bitcoin’s decline proves that there is a developing nuance in the relationship between crypto and traditional assets. While the Nasdaq dropped 11% in the two days after the tariff news, Bitcoin fell only 6%. This could very likely suggest a possible decoupling trend. Lai also pointed out that Bitcoin’s 24/7 trading liquidity made it one of the very few major assets available for weekend risk-off strategies, which could explain the weekend drop.
Nonetheless, Lai stated that Bitcoin’s price is still fundamentally tied to global liquidity conditions. Even as correlations with traditional equities seem to weaken, the cryptocurrency still responds to broader financial pressures, especially those impacting global capital flows. Lai explained that gold continues to serve as a traditional hedge against geopolitical instability, but Bitcoin is increasingly seen as a strategic reserve asset by investors who are looking to diversify in turbulent markets.
Arthur Hayes, the co-founder of BitMEX and CIO of Maelstrom, pointed out that Bitcoin’s price movements are largely driven by market expectations around the future supply of fiat money. While short-term volatility persists, Bitcoin’s long-term conceptual role as a store of value is gaining more ground among investors navigating an increasingly uncertain global economy.
Sui ETF Bid Hits SEC Desk
The market turmoil certainty does not deter companies from issuing more ETFs. Cboe BZX Exchange recently submitted a request to US regulators for permission to list an ETF backed by Sui (SUI), the native token of the Sui Network. This is according to public filings dated April 8.
The proposed ETF will be issued by Canary Capital, a firm known for its focus on crypto ETFs. If approved by the US Securities and Exchange Commission (SEC), this will be the first ETF in the country to hold SUI.
Sui is a blockchain platform built using Move, which is a smart contract language derived from Rust, and it is designed to offer users a Web3 experience that closely mirrors traditional applications. The network currently has a total value locked (TVL) of about $1.1 billion, while its native token has a market cap of approximately $6.5 billion, according to CoinMarketCap.
SUI’s market cap since launch (Source: CoinMarketCap)
Canary Capital already filed its S-1 regulatory documentation for the SUI fund in March as part of a broader strategy by the asset manager to bring a range of crypto-backed ETFs to US markets. Other proposed ETFs from Canary include funds for Litecoin, XRP, Hedera, Axelar, and Pengu. The Cboe BZX Exchange has been just as active in the ETF space as it filed in March to list Solana ETFs issued by Franklin Templeton and Fidelity.
The wave of altcoin ETF filings accelerated since Jan. 20, when Donald Trump assumed office. The SEC also acknowledged dozens of proposals tied to various altcoins, including major layer-1 tokens like Solana and SUI, as well as meme coins like Dogecoin and the Trump-themed Official Trump (TRUMP) token.
Despite this uptick in filings, there are still many questions around investor appetite for altcoin ETFs. While Bitcoin and Ethereum ETFs have attracted strong institutional interest, some analysts are skeptical about demand for funds holding lesser-known tokens. Katalin Tischhauser, the head of research at crypto bank Sygnum, said that while there is considerable buzz surrounding altcoin ETFs, it is still unclear where meaningful investor demand will actually materialize.
BlackRock Taps Anchorage for Crypto Custody
Companies are also not letting the market trouble stop them from bettering their crypto offerings. BlackRock announced a new partnership with Anchorage Digital to enhance its crypto custody capabilities. This will help the company keep up with the growing interest in digital assets from both retail and institutional investors.
The collaboration was revealed on April 8 and will see Anchorage, the only federally chartered crypto bank in the United States, provide BlackRock with custody, staking, and settlement services for digital assets. Anchorage already supports BlackRock’s BUIDL fund, which is a $2 billion tokenized offering backed by US Treasurys and focused on real-world assets.
With $11.6 trillion in assets under management, BlackRock is the world’s largest investment firm and a very dominant player in the ETF product space. The company currently holds approximately $45.3 billion in Bitcoin and $1.7 billion in Ethereum through its various ETP offerings, according to data from Arkham. While Anchorage will play a big role in BlackRock’s broader crypto strategy, Coinbase is still the custodian for the Bitcoin held in the firm’s iShares Bitcoin Trust ETF.
Since the launch of Bitcoin ETFs in January of 2024, these products have drawn a lot of investor interest, and accumulated close to $36 billion in net inflows. However, 2025 has been riddled with unexpected volatility with inflows frequently followed by steep outflows. However, some people believe this is just part of the turbulent nature of the crypto ETF landscape.
Daily flows for Bitcoin ETFs (Source: Sosovalue)
Despite the fluctuations, Bitcoin funds are still among some of the most successful ETF launches in financial history. BlackRock’s iShares Bitcoin Trust specifically has stepped up as a standout performer by amassing a net inflow of $39 billion. The firm also expanded its footprint by launching a crypto ETP in Europe. This could mean that the firm has strong continued confidence in the long-term potential of digital assets.
Market Chaos Causes Investors to Dump Bitcoin ETFs
About $252 million was pulled from BlackRock’s IBIT. This its the largest single-day outflow since February. Despite initial resilience, Bitcoin eventually followed traditional markets downward due to broader liquidity concerns. Meanwhile, ETF developments are not slowing down as Cboe BZX Exchange submitted a proposal to list a Sui (SUI) ETF. If approved, this will be the first ETF in the US to hold SUI. BlackRock also recently partnered with Anchorage Digital to boost its crypto custody infrastructure.
US Tariff Turmoil Triggers Bitcoin ETF Exodus
Bitcoin's relationship with traditional financial markets is once again being tested as global investors pull away from risk assets in response to escalating US trade tensions. On April 8, US-listed spot Bitcoin ETFs recorded their fourth straight day of outflows. Over $326 million was pulled out, according to Farside Investors.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced the largest outflow after shedding more than $252 million. This was its largest single-day loss since Feb. 26.
Bitcoin ETF flow (Source: Farside Investors)
This wave of outflows was part of a dramatic reaction in traditional markets to US President Donald Trump’s announcement on April 2 of new reciprocal import tariffs. The policy shift sparked a historic $5 trillion sell-off in the S&P 500 over just two days. Despite this turmoil, Bitcoin initially showed some resilience by staying above the $82,000 level before tumbling below $75,000 on Sunday, April 6.
According to Lennix Lai, global chief commercial officer at OKX, the lag between the equity market drop and Bitcoin’s decline proves that there is a developing nuance in the relationship between crypto and traditional assets. While the Nasdaq dropped 11% in the two days after the tariff news, Bitcoin fell only 6%. This could very likely suggest a possible decoupling trend. Lai also pointed out that Bitcoin’s 24/7 trading liquidity made it one of the very few major assets available for weekend risk-off strategies, which could explain the weekend drop.
Nonetheless, Lai stated that Bitcoin’s price is still fundamentally tied to global liquidity conditions. Even as correlations with traditional equities seem to weaken, the cryptocurrency still responds to broader financial pressures, especially those impacting global capital flows. Lai explained that gold continues to serve as a traditional hedge against geopolitical instability, but Bitcoin is increasingly seen as a strategic reserve asset by investors who are looking to diversify in turbulent markets.
Arthur Hayes, the co-founder of BitMEX and CIO of Maelstrom, pointed out that Bitcoin’s price movements are largely driven by market expectations around the future supply of fiat money. While short-term volatility persists, Bitcoin’s long-term conceptual role as a store of value is gaining more ground among investors navigating an increasingly uncertain global economy.
Sui ETF Bid Hits SEC Desk
The market turmoil certainty does not deter companies from issuing more ETFs. Cboe BZX Exchange recently submitted a request to US regulators for permission to list an ETF backed by Sui (SUI), the native token of the Sui Network. This is according to public filings dated April 8.
The proposed ETF will be issued by Canary Capital, a firm known for its focus on crypto ETFs. If approved by the US Securities and Exchange Commission (SEC), this will be the first ETF in the country to hold SUI.
Sui is a blockchain platform built using Move, which is a smart contract language derived from Rust, and it is designed to offer users a Web3 experience that closely mirrors traditional applications. The network currently has a total value locked (TVL) of about $1.1 billion, while its native token has a market cap of approximately $6.5 billion, according to CoinMarketCap.
SUI’s market cap since launch (Source: CoinMarketCap)
Canary Capital already filed its S-1 regulatory documentation for the SUI fund in March as part of a broader strategy by the asset manager to bring a range of crypto-backed ETFs to US markets. Other proposed ETFs from Canary include funds for Litecoin, XRP, Hedera, Axelar, and Pengu. The Cboe BZX Exchange has been just as active in the ETF space as it filed in March to list Solana ETFs issued by Franklin Templeton and Fidelity.
The wave of altcoin ETF filings accelerated since Jan. 20, when Donald Trump assumed office. The SEC also acknowledged dozens of proposals tied to various altcoins, including major layer-1 tokens like Solana and SUI, as well as meme coins like Dogecoin and the Trump-themed Official Trump (TRUMP) token.
Despite this uptick in filings, there are still many questions around investor appetite for altcoin ETFs. While Bitcoin and Ethereum ETFs have attracted strong institutional interest, some analysts are skeptical about demand for funds holding lesser-known tokens. Katalin Tischhauser, the head of research at crypto bank Sygnum, said that while there is considerable buzz surrounding altcoin ETFs, it is still unclear where meaningful investor demand will actually materialize.
BlackRock Taps Anchorage for Crypto Custody
Companies are also not letting the market trouble stop them from bettering their crypto offerings. BlackRock announced a new partnership with Anchorage Digital to enhance its crypto custody capabilities. This will help the company keep up with the growing interest in digital assets from both retail and institutional investors.
The collaboration was revealed on April 8 and will see Anchorage, the only federally chartered crypto bank in the United States, provide BlackRock with custody, staking, and settlement services for digital assets. Anchorage already supports BlackRock’s BUIDL fund, which is a $2 billion tokenized offering backed by US Treasurys and focused on real-world assets.
With $11.6 trillion in assets under management, BlackRock is the world’s largest investment firm and a very dominant player in the ETF product space. The company currently holds approximately $45.3 billion in Bitcoin and $1.7 billion in Ethereum through its various ETP offerings, according to data from Arkham. While Anchorage will play a big role in BlackRock’s broader crypto strategy, Coinbase is still the custodian for the Bitcoin held in the firm’s iShares Bitcoin Trust ETF.
Since the launch of Bitcoin ETFs in January of 2024, these products have drawn a lot of investor interest, and accumulated close to $36 billion in net inflows. However, 2025 has been riddled with unexpected volatility with inflows frequently followed by steep outflows. However, some people believe this is just part of the turbulent nature of the crypto ETF landscape.
Daily flows for Bitcoin ETFs (Source: Sosovalue)
Despite the fluctuations, Bitcoin funds are still among some of the most successful ETF launches in financial history. BlackRock’s iShares Bitcoin Trust specifically has stepped up as a standout performer by amassing a net inflow of $39 billion. The firm also expanded its footprint by launching a crypto ETP in Europe. This could mean that the firm has strong continued confidence in the long-term potential of digital assets.