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U.S. spot Bitcoin ETFs faced a setback on May 29, ending their impressive 10-day inflow streak. Investors appeared cautious amid rising uncertainty surrounding trade policies linked to former President Donald Trump, following conflicting court decisions.

Bitcoin ETF Outflows: Key Data

According to recent data, U.S.-listed spot Bitcoin ETFs recorded a net outflow of $358.65 million on that day, marking the first such decline since mid-May. This reversal comes after a robust 10-day period where over $4.2 billion poured into these funds.

Among the hardest-hit funds was Fidelity’s FBTC, leading with $166.32 million in outflows. Grayscale’s GBTC followed closely, losing $107.53 million. ARK 21Shares’ ARKB and Bitwise’s BITB recorded outflows of $89.22 million and $70.85 million, respectively. Smaller outflows were also seen in ETFs like Invesco’s BTCO, VanEck’s HODL, Valkyrie’s BRRR, and Franklin Templeton’s EZBC, which collectively lost $49.83 million.

BlackRock’s IBIT Bucks the Trend

Despite the overall bearish sentiment, BlackRock’s IBIT stood out with $125.09 million in inflows. This suggests that some investors view the dip as an opportunity to accumulate Bitcoin exposure.

May’s Overall Performance Remains Strong

Despite the one-day outflow, May has been a strong month for Bitcoin ETFs, with net inflows reaching approximately $5.85 billion. This figure is nearly double the inflows seen in April. In contrast, February and March experienced net outflows of $3.56 billion and $767.91 million, respectively, highlighting the growing investor interest in Bitcoin ETFs.

Bitcoin vs. Gold: A Shift in Investor Preferences

While Bitcoin ETFs have attracted nearly $9 billion in the past five weeks, traditional gold-backed ETFs have seen outflows exceeding $2.8 billion. This trend indicates a potential shift in investor sentiment, as Bitcoin increasingly gains recognition as a store of value and an inflation hedge, roles historically held by gold.

Trade Policy Uncertainty Adds to Market Volatility

The sudden outflows are partially attributed to uncertainty surrounding U.S. trade policy. A federal appeals court reinstated tariffs on the European Union imposed during Trump’s presidency, shortly after a lower court had deemed them unlawful. The administration is now expected to escalate the matter to the Supreme Court.

Trump’s “reciprocal tariff” strategy, targeting nations with higher tariffs on U.S. goods, has been a contentious issue. Investors fear that a return to aggressive tariff policies could increase costs and fuel inflation, contributing to market unease.

Market Reactions

The price of Bitcoin reflected this uncertainty, dipping to a session low of $105,332 on May 30 before recovering slightly to just above $106,000. This represents a 1.7% decline in 24 hours, although Bitcoin remains within 5% of its all-time high of $111,891 reached earlier this month.

Crypto-related stocks experienced mixed results. Coinbase (COIN) fell by 2.14%, while MicroStrategy (MSTR) gained 1.7%. Bitcoin mining companies, including Bitfarms (BITF), Bit Digital (BTBT), CleanSpark (CLSK), and Greenidge (GREE), saw declines of 3-5%.

Traditional U.S. equities also gave up most of the gains they posted following the initial court ruling against the tariffs. With legal uncertainties persisting, markets appear to have adopted a cautious, wait-and-see approach.

Expert Insights on Bitcoin’s Trajectory

“The recent activity appears more indicative of a correction rather than a bearish reversal,” said Ruslan Lienkha, chief of markets at YouHodler. He noted that Bitcoin is likely to continue tracking major U.S. tech indices in the medium term due to shared sensitivities to macroeconomic factors like interest rates and liquidity.

Lienkha added that this correlation could gradually weaken as Bitcoin matures into an independent asset class with unique market drivers. “Given these dynamics, it is likely that BTC will continue to trade within this range for some time, potentially building a solid foundation for the next leg higher toward a new all-time high,” he explained.

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