Bitcoin ETFs Lose Over $800M in April as Institutions Stick with Bonds Amid Tariff Volatility
‘Sell bonds, buy bitcoin,’ proclaimed a popular social media account last week, echoing the sentiments of many crypto advocates who believe that tariff-induced volatility in the U.S. Treasury market – a cornerstone of global finance – has revealed the fragility of the dollar-denominated monetary system. However, institutions are not buying into this narrative. As of Monday, the 11 U.S.-listed spot Bitcoin ETFs, considered a proxy for institutional activity, were on track to register the second-highest cumulative monthly outflow of over $800 million, according to data source SoSoValue. The funds bled a record $3.56 billion in February and $767 million in March. Meanwhile, the three-month Treasury bills auctioned Monday drew strong demand from institutions. According to data source CME, the U.S. Treasury sold $80 billion in three-month bills at an interest rate of 4.225%, up from the previous 4.175%. Similarly, it sold $68 billion in six-month bills at a slightly higher-than-previous interest rate of 4.06%. However, the bid-to-cover ratio, representing the number of bids received relative to the number of bids accepted, for the three-month bills rose to 2.96 from 2.82. In other words, for every three-month bill offered, nearly 3x more bids were received. The ratio for the six-month bills rose marginally to 2.90 from 2.79. The strong uptake indicates that institutions still view the U.S. debt as a haven. The T-bills are highly liquid and considered low-risk, making them the preferred choice for collateral in the repo (repurchase agreement) market. In a repo transaction, one party sells T-bills or other securities to another, agreeing to repurchase them later, allowing the seller to access short-term funding. Institutions typically park money in T-bills when the economic outlook is uncertain, calling for flexibility in investments rather than commitment to long-term positions. President Donald Trump’s full-blown trade war against China and other major trading partners has ratcheted uncertainty to such an extent that there is the possibility of a sudden blackout in corporate earnings guidance on Wall Street. According to Inc , BofA’s 3-month guidance ratio — which tracks the number of companies above versus below consensus guidance — has fallen to 0.4x, its weakest since April 2020 and below its historical average of 0.8x. Meanwhile, the U.S. recession odds have increased above 50% on betting platforms, with elevated Japanese bond yields further complicating matters for risk assets.
Gold and Bonds’ Safe Haven Allure May be Fading With Bitcoin Emergence
The idea of “safe haven” assets—traditionally marked by gold and government bonds—amid market turmoil, is being tested like never before. For decades, portfolio construction and risk management were simple: 60% equities, 40% bonds and when markets panicked, capital typically flowed into gold and government bonds. These assets were slow, steady, and predictable, making them an ideal safe haven for investors looking for protection against volatility. But in today’s world of 24/7 markets, geopolitical instability, and rising distrust in sovereign systems, have turned that logic on its head, asking the question: does the definition of a safe haven need a refresh? Enter the new kid in the block: bitcoin. It is highly volatile, widely misunderstood, and often dismissed as a speculative asset by many corners of Wall Street and Main Street. Yet, it has staged an extraordinary run since the COVID-19 market lows. It’s up over 1,000% since the COVID-19 market crash in March 2020. During that same period, long-duration bonds—measured via iShares 20+ Year Treasury Bond ETF (TLT)—are down 50% from their 2020 highs. Even gold, the true and tried safe haven asset—up 90% over five years—looks less impressive when adjusted for monetary debasement, which saw, in 2020 alone, over 40% of the total USD money supply being printed. Still, bitcoin’s safe haven credential remains contested by investors. In several recent risk-off events, it acted less like a hedge and more like a high-beta risk asset against the Invesco QQQ Trust, Series 1 ETF. Covid-19 (March 2020): BTC fell 40% vs QQQ’s 27% Bank crisis (March 2023): BTC -14%, QQQ -7% Yen carry trade unwind (Aug 2024): BTC -20%, QQQ -6% Tariff-led selloff (April 2025): BTC -11%, QQQ -16% Market Reaction to Events: (TradingView) The first three examples show bitcoin as a kind of leveraged tech trade. But the most recent tariff shock broke the pattern — bitcoin dropped less than the Nasdaq, showing relative strength in an otherwise weak macro environment spurred by President Trump’s tariffs. While these data points may not make a trend, this evolving behavior highlights a broader phenomenon: the global financial backdrop has changed. “Non-sovereign stores of value, like bitcoin, should do well,” said NYDIG Research in a note. “Politically neutral assets should be exempt from the global machinations at play right now.” Bitcoin is volatile, yes, but it is also globally liquid, decentralized, censorship-resistant, and immune to tariffs or central bank policy. In an era of geopolitical tension and financial repression, those attributes start to make the asset look more enduring than other safe havens. Meanwhile, traditional safe havens aren’t looking so safe. Gold’s gains look less impressive when weighed against the scale of monetary expansion. Long-duration bonds aren’t faring much better either as the 30-year treasury yield approaches 5%, making them painful for duration-heavy portfolios. Since the sell-off began last Thursday, the Nasdaq has dropped nearly 10%, bitcoin is down 6%, TLT has fallen over 4%, and gold has slipped more than 3%. Meanwhile, the DXY index — which tracks the U.S. dollar against a basket of foreign currencies — remains relatively flat, while the all-important U.S. 10-year Treasury yield has surged nearly 8%. On a risk-adjusted basis, bitcoin is holding its ground—performing no worse than traditional safe-haven assets like gold or TLT. Looking at these four major crisis events, a pattern emerges: : each sell-off in bitcoin has marked a significant long-term bottom. During the COVID crash, BTC dropped to ~$4,000 — a level never seen again. In the March 2023 banking crisis, it briefly fell below $20,000 before resuming its climb. The August 2024 yen carry trade unwind brought it down to $49,000 — again, a level that hasn’t returned. If history is any guide, wherever this current low takes us, it may well establish the next long-term floor. So, is Bitcoin a safe haven? If the old framing — low volatility and downside protection during a panic — still holds, then BTC falls short. But in a financial world dominated by sovereign risk, inflation, and constant policy uncertainty, bitcoin starts to look more like an asset that investors might need to consider for durability, neutrality and liquidity. In this evolving landscape, maybe bitcoin isn’t failing the safe haven test. Maybe the old playbook of what safe haven is, needs to change.