Crypto Funds Sees $240M Outflow Amid Tariff Concerns

Last week, global crypto funds, including those from major companies like Bitwise, BlackRock, and Grayscale, saw a big withdrawal of $240 million. This drop in investment happened because of worries over new U.S. trade tariffs, which caused uncertainty in the financial markets. 

However, despite the outflows, the overall value of crypto assets remained stable. This shows that the digital asset market is stronger than many might think.

Bitcoin Saw the Biggest Outflow

Bitcoin (BTC) saw the biggest outflow, with $207 million withdrawn from Bitcoin-focused investments, reducing this year’s total inflows to $1.3 billion. Ethereum (ETH) saw $37.7 million in outflows, and Solana (SOL) and Sui lost $1.8 million and $4.7 million, respectively. Meanwhile, Toncoin (TON) saw a small inflow of $1.1 million. 

Regionally, the U.S. led the outflows with $210 million, followed by Germany at $17.7 million, but Canada and Brazil saw inflows of $4.8 million and $1.4 million. 

Despite these outflows, the total value of crypto assets grew slightly by 0.8%, reaching $132.6 billion. 

This shows resilience compared to traditional investments like global stocks, which fell by 8.5%. James Butterfill, Head of Research at CoinShares, noted that the slight increase in AUM shows digital assets’ strength. 

This is despite the economic uncertainty caused by tariff issues.

Tariff Worries Trigger a Market Sell-Off

The big drop in global crypto funds happened after President Donald Trump announced new tariffs on U.S. trading partners. This created fear in financial markets, causing many investors to sell their assets, including cryptocurrencies.

As a result, Bitcoin lost more than 6% of its value in the past week. However, some experts believe this is just a normal market reaction and not a sign of deeper problems within the crypto industry. 

Marcin Kazmierczak, co-founder of RedStone, pointed out that the market is going through typical ups and downs. He added that the crypto sector is much stronger now than in previous downturns.

Kazmierczak also mentioned that the crypto industry has grown with more solid infrastructure and real-world use cases. This helps it stay resilient even during times of economic uncertainty.

Blockchain Crypto Funds Gain Momentum 

While the broader crypto market faced some challenges, blockchain-related stocks did better. CoinShares reported $8 million in inflows into blockchain stocks for the second week. 

This marks a positive trend for blockchain companies like Coinbase, which have faced challenges in recent months. Kazmierczak pointed out that experienced investors are taking advantage of lower prices to buy shares in blockchain companies. 

They see this as a chance to invest while the market is down. This shows that, even though the crypto market faces some tough moments, investors still see value in blockchain technology.