- Despite Trump’s tariff disruptions, Bitcoin ETF issuers bought aggressively, reflecting institutional confidence.
- 220 million Bitcoin-backed ETF inflows were seen yesterday, a sign of great demand irrespective of market volatility.
- BTC’s long-short ratio reached 1.0, showing a balanced sentiment amid market uncertainty.
According to Arkham Intelligence, the three top Bitcoin ETF issuers have aggressively purchased BTC, reflecting strong institutional activity. On the heels of $220 million in net inflows yesterday, these issuers appear to be bracing for a demand surge. Despite recent Bitcoin price swings, investor confidence in crypto is holding firm.
The global financial markets have become more volatile as a result of President Trump’s latest tariff announcement. Nicknamed “Liberation Day,” the new economic policy has rattled both equities and crypto alike. With stricter-than-anticipated trade tariffs, recession worries are building up, leading to widespread liquidations across multiple markets, including digital assets.
The Impact of Trump’s Tariff Announcement
During a highly anticipated press conference, President Trump revealed sweeping tariffs targeting all nations. His plan includes a 25% charge on foreign-made automobiles and reciprocal duties calculated from existing global tariffs. This policy has led to a synchronized downturn across U.S. stock indices and crypto exchanges.
The cryptocurrency market followed the performance on Wall Street with significant pullbacks. However, unlike other assets, Bitcoin ETFs were surprisingly robust. In the face of economic uncertainty, institutional investors’ demand for BTC seems to be stabilizing. Arkham Intelligence even highlighted the fact that Grayscale, Fidelity, and Ark Invest are still buying BTC aggressively today.
Coinglass data shows a significant shift in the long-short ratio of BTC. It had been at 0.94 last week, indicating a bearish bias. It reached 1.0 today, which reflects the participants being equally split between bulls and bears. It reflects cautious trading and steady investor sentiment.
Long-Short Ratio for Bitcoin Indicates Stabilizing Sentiment
Even Bitcoin’s long-short ratio has changed substantially. Slightly bearish last week’s positioning at 48.5% long and 51.5% short had balanced itself at 50.5% long. This balance reflects investors hedging in a changing environment, communicating stabilized sentiment and a possible stop in directionally betting as uncertainty takes over.
Meanwhile, ETF inflows are gaining momentum. SoSoValue data indicates spot Bitcoin ETFs attracted $220 million. While, the Tariff Plan was announced after the stock market close, the inflow still indicates strong faith in Bitcoin’s performance in the near term amid headwinds in macroeconomic conditions.
It’s unclear how the current volatility will shape short-term trends for the ETFs. However, Arkham tracking indicates insurers are acting with resolve, potentially anticipating greater investor demand. If the inflows hold over the remainder of the week, it would suggest that institutions view BTC as more resilient than traditional finance.
Grayscale expanded its suite of digital asset investment products with the launch of two new Bitcoin-focused ETFs, the Bitcoin Covered Call ETF (BTCC) and the Premium Income ETF (BPI). Both are options-based investment trusts that plan to extract returns from the volatility in BTC. The development marks another trend in investing in cryptocurrencies other than tracking the plain-spot prices.
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