U.S.-listed Bitcoin BTC/USD exchange-traded funds are grappling with their most prolonged stretch of net outflows since their debut in January last year, as investors react to market volatility spurred by President Donald Trump's tariff-driven trade policies.

What Happened: Over the past five weeks, the group of 12 Bitcoin ETFs has collectively shed more than $5.5 billion, according to data compiled by Bloomberg.

The outflows, the longest since the funds launched, began shortly after Trump returned to the White House, illustrating that investor caution over trade tensions is currently outweighing the administration's crypto-friendly stance.

"Bitcoin and crypto overall remain driven by the macro picture right now," said Greg Magadini, director of derivatives at Amberdata, in a note. "I don't expect Bitcoin to diverge from risk-assets for the time being."

Since hitting record highs following Trump's re-election in November, Bitcoin has faced mounting pressure, falling around 12% year-to-date. As of Friday morning in London, the digital asset was trading near $83,500.

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Why It Matters: However, some market watchers believe the worst may be over for ETF redemptions.

Georgii Verbitskii, founder of crypto trading platform TYMIO, told Benzinga that ETF selling pressure has noticeably eased.

"Bitcoin ETF outflow is subsiding: Friday's sell-off was significantly lower in comparison to higher selling volumes observed in late February and early March," Verbitskii said.

He noted that recent withdrawals likely reflect short-term volatility rather than a broader exit trend.

"The market is currently in a brittle balance, and the situation with ETFs could turn positive closer to the weekend if Nasdaq stabilizes and the VIX gets back to normal."

Verbitskii added that the fading negative momentum in ETFs could set the stage for a recovery, should market conditions improve.

For now, however, global risk aversion—sparked by trade tensions and wider macroeconomic uncertainty—continues to weigh on crypto assets alongside traditional equities.

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