In April 2025, U.S.-listed Bitcoin ETFs faced significant outflows, projected to exceed $800 million, marking the second-highest monthly drop in recorded history. Despite calls on social media encouraging investments in Bitcoin, institutional investors have shown a strong preference for U.S. Treasury bills, viewing them as a safer option amid rising economic uncertainties, tariff disputes, and volatility in markets. February had witnessed an unprecedented outflow of $3.56 billion from these Bitcoin ETFs, with March also experiencing $767 million in losses. Auctions for three-month and six-month Treasury bills indicated robust institutional demand, underscoring their appeal as low-risk investments during uncertain economic conditions. The ongoing trade war and rising recession risks have intensified market unpredictability, significantly affecting corporate earnings and investment directions. This trend suggests that institutions are prioritizing liquidity and flexibility over long-term commitments to riskier assets like Bitcoin, reflecting broader trends in asset allocation during turbulent times.

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