For the third week in a row, digital asset investment products have witnessed significant outflows, totaling $795 million. This trend is largely attributed to ongoing tariff issues that are putting considerable pressure on the sector. As a result, the cumulative outflow since February has reached a staggering $7.2 billion, effectively erasing all but $165 million of the year’s inflows.
Despite these challenges, the week concluded with a rebound in prices, leading to a resurgence in assets under management, which climbed to $130 billion. This marks an 8% increase from the lowest point observed on April 8.
The current outflow level represents the weakest since November 2024, coinciding with former President Trump’s temporary reversal of tariffs perceived to have damaging economic effects.
Bitcoin Leads in Outflow
According to CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin was at the forefront of outflows, experiencing a significant departure of $751 million last week. Nevertheless, Bitcoin’s year-to-date inflows remain in the positive at $545 million.
Outflows were broadly felt across various countries and asset management firms, indicating a pervasive negative sentiment within the market. Notably, short-Bitcoin products also saw $4.6 million in outflows, underscoring a bearish outlook among some investors.
Ethereum closely trailed Bitcoin with $37.6 million in outflows, while other assets, including Solana, Aave, and Sui, experienced losses of $5.1 million, $0.78 million, and $0.58 million respectively. Additionally, Cardano and Litecoin recorded outflows of $0.3 million each.
Conversely, XRP enjoyed a modest influx of $3.5 million, with smaller altcoins such as Ondo, Algorand, and Avalanche also witnessing small gains. Multi-asset investment products experienced slight inflows totaling $1.1 million.
Global Flows
The United States reported the most significant outflow of $763 million amidst ongoing market turbulence. Switzerland followed with an outflow of $11.9 million, while Hong Kong recorded a similar figure of $11.2 million. Other countries, such as Sweden and Germany, observed notable outflows of $6.8 million and $4.4 million, respectively.
On a brighter note, Canada recorded inflows of $2.1 million, while Australia and Brazil posted modest increases of $0.4 million and $0.2 million, respectively.
This ongoing trend speaks to the volatility and evolving landscape of digital asset investments, making it crucial for investors to remain informed and adaptable in these turbulent times.
