Digital Asset Funds See $795 Million Exodus as Investors React to Tariff Uncertainty
Cryptocurrency investment vehicles witnessed significant capital withdrawals totaling $795 million this week, driven by growing investor apprehension surrounding impending tariff policies. Market analysts attribute the outflows to heightened risk aversion amid geopolitical tensions that could impact global digital asset markets. The withdrawal figures represent one of the largest weekly redemptions since the 2022 market downturn, with Bitcoin products accounting for approximately 65% of total outflows. Institutional investors appear to be rebalancing portfolios ahead of potential regulatory changes, while retail participation in crypto ETPs has declined sharply. This movement coincides with decreased trading volumes across major exchanges and a contraction in open interest for crypto derivatives, suggesting broader market caution.
Bitcoin Leads in Outflow
According to CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin experienced the largest outflows among all digital assets last week, with a total of $751 million leaving the market. Despite this, Bitcoin’s year-to-date inflows still stand at a positive $545 million.
Outflows were significant across different countries and asset managers, which reflected the broader negative sentiment in the market. The outflows were not limited to Bitcoin alone, as short-Bitcoin products also saw $4.6 million in outflows.
Ethereum followed closely behind, with $37.6 million in outflows, while other assets like Solana, Aave, and Sui saw losses of $5.1 million, $0.78 million, and $0.58 million, respectively. Cardano and Litecoin also posted outflows of $0.3 million each.
On the other hand, XRP saw inflows of $3.5 million, and smaller altcoins like Ondo, Algorand, and Avalanche recorded small gains. Multi-asset investment products also saw slight inflows of $1.1 million.
Global Flows
The United States experienced the largest outflow, with $763 million, amidst market tubulence. Switzerland followed suit with an outflow of $11.9 million, while Hong Kong had a similar figure of $11.2 million. Other countries, such as Sweden and Germany, also saw notable outflows of $6.8 million and $4.4 million respectively.
On the positive side, Canada had inflows of $2.1 million, and Australia and Brazil saw modest inflows of $0.4 million and $0.2 million, respectively.
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