On Tuesday, investors withdrew $326 million from U.S. spot Bitcoin exchange-traded funds (ETFs), marking the largest single-day outflow since March 11. This latest pullback comes as traders react to escalating tensions between the U.S. and its trade partners over President Trump’s new tariffs. The implementation of the tariffs, such as the 104% duty on Chinese imports, created uncertainty in global markets, pushing investors to de-risk their portfolios. BlackRock’s IBIT was hit hardest, losing $253 million in its third-worst day since launch.

The outflows continued a negative streak for Bitcoin ETFs, which have now seen withdrawals for four consecutive days. These losses coincided with a drop in Bitcoin’s price, which fell to $75,100 on Tuesday, its lowest point in five months. Analysts attribute the outflows to a combination of risk aversion and the broader market’s reaction to Trump's tariffs.

Bitcoin ETFs were not the only assets facing losses. Ethereum’s spot ETFs also saw outflows on Tuesday, with $3.3 million pulled from the funds. The largest decline came from Fidelity’s Ethereum fund, contributing to Ethereum’s overall struggles. The price of Ethereum fell below $1,450, continuing a downward trend that has seen the asset lose value compared to Bitcoin over the past five years. The ETH/BTC ratio dropped to a five-year low, reflecting the ongoing weakness in Ethereum’s price relative to Bitcoin.

Despite these challenges, Ethereum's layer-2 networks, such as Arbitrum and Optimism, have seen an increase in activity and value locked on-chain. These networks are helping to scale Ethereum, providing some growth despite the stagnation on the mainnet. Ethereum’s transaction fees, which recently dropped to their lowest level since August 2024, also point to reduced congestion on the network.

In a contrasting move, 21Shares announced the launch of a fully backed Dogecoin exchange-traded product (ETP) on Switzerland’s SIX Swiss Exchange. The Dogecoin ETP, launched in partnership with the Dogecoin Foundation, marks a significant step for the meme-inspired cryptocurrency as it receives more institutional attention. This launch comes as Dogecoin gains recognition, even as Bitcoin and Ethereum struggle with market pressures.

The market remains highly volatile as the implications of the tariff war unfold. Investors are watching closely, with Bitcoin’s performance and Ethereum’s challenges taking center stage in this uncertain environment.