Trump Tariffs Spark $800M Crypto ETF Rout: Can The Macro Narrative Shift?
With worries of a worldwide economic slowdown growing in the aftermath of sweeping U.S. tariffs, cryptocurrency ETFs are feeling the brunt.
What Happened: Monday saw an intense sell-off in major crypto ETFs, following a broader drop in digital assets and risk-on markets provoked by President Donald Trump‘s “Liberation Day” tariffs.
The aftermath came quickly: Bitcoin dropped below $75,000, and is currently just over $78,000. Ethereum recorded double-digit declines. More than $800 million was liquidated in 24 hours, per QCP Capital, as investors hurried to cover themselves as volatility spiked—BTC’s implied volatility rose above 85v, and Ethereum jumped to 130v.
Among the largest losers since Trump’s so-called “Liberation Day” were three of the most well-known crypto-linked ETFs:
- iShares Bitcoin Trust ETF (NASDAQ:IBIT) declined by 10.4% since April 2. IBIT, a spot Bitcoin ETF, directly mirrors the underlying commodity’s price action. Its drawdown represented wide-based selling pressure from both institutional and individual investors. Earlier this year to widespread publicity, this ETF first started, with subsequent steady inflows. Now that momentum is in reverse because of macro headwinds.
- iShares Ethereum Trust ETF (NASDAQ:ETHA) declined the most, losing 19.6%. Ethereum’s increased susceptibility …
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