Cryptocurrency markets are facing significant headwinds, with investors withdrawing funds at a record pace. On Thursday alone, over $536 million was pulled out of U.S.-based spot Bitcoin ETFs. This massive outflow represents the largest single-day withdrawal since August 2023, according to SoSoValue data, impacting eight out of twelve Bitcoin ETF products. Ark & 21Shares’ ARKB saw a notable $275 million exit, while Fidelity’s FBTC faced a $132 million outflow. Other ETFs managed by BlackRock, Grayscale, Bitwise, VanEck, and Valkyrie also reported negative flows. This surge in investor risk aversion is driven in part by recent events like the U.S. President Donald Trump’s 100% tariff on imported goods from China and widespread global market leverage liquidations exceeding $20 billion last week. These factors have caused a significant shift in investor behavior, leading to increased caution. The sudden withdrawal of these funds highlights a broader trend of increased risk aversion within the crypto market.