Crypto Investment Products Face $795 Million in Withdrawals Due to Tariff Worries

For the third consecutive week, the sector experienced notable outflows from digital asset investment products, totaling $795 million, largely due to ongoing tariff concerns. This situation has contributed to a staggering total of $7.2 billion in outflows since February, nearly erasing all year-to-date inflows, which now sit at just $165 million.

Nonetheless, a price recovery later in the week increased assets under management to $130 billion, marking an 8% rebound from the lowest figures recorded on April 8.

This represents the lowest level seen since November 2024, following the temporary rollback of tariffs, which had previously been deemed detrimental to the economy.

Bitcoin Takes the Lead in Outflows

As highlighted in the latest report on digital asset fund flows, Bitcoin faced the highest outflows of all cryptocurrencies last week, with a sum of $751 million exiting the market. However, Bitcoin’s year-to-date inflows remain positive at $545 million.

The outflows spanned various countries and asset managers, mirroring the prevailing negative market sentiment. This trend extended beyond Bitcoin, with short-Bitcoin products experiencing $4.6 million in outflows as well.

Ethereum followed closely with $37.6 million in outflows, while other assets like Solana, Aave, and Sui recorded losses of $5.1 million, $0.78 million, and $0.58 million, respectively. Cardano and Litecoin also experienced minor outflows of $0.3 million each.

Conversely, XRP attracted inflows of $3.5 million, and smaller altcoins like Ondo, Algorand, and Avalanche noted modest gains. Multi-asset investment products also experienced slight inflows, totaling $1.1 million.

Worldwide Flow Trends

The United States led the outflows with $763 million amidst market instability. Switzerland followed with outflows of $11.9 million, with Hong Kong reporting a similar figure of $11.2 million. Other countries like Sweden and Germany also faced significant outflows of $6.8 million and $4.4 million, respectively.

On a brighter note, Canada experienced inflows of $2.1 million, while Australia and Brazil saw modest increases of $0.4 million and $0.2 million, respectively.