Crypto funds lose $795 million amid tariff uncertainty
Crypto investment products faced significant outflows last week, with $795 million exiting the market, marking the third consecutive week of withdrawals.
This brings total outflows since February to $7.2 billion, effectively erasing nearly all year-to-date inflows, which now stand at just $165 million.
Bitcoin (CRYPTO:BTC) led the outflows, accounting for $751 million, or about 94% of the total, despite maintaining a positive net inflow of $545 million for the year.
Ethereum followed with $37.6 million in outflows, while other altcoins like Solana, Aave, and Sui also saw declines.
However, not all cryptocurrencies suffered losses.
XRP (CRYPTO:XRP) defied the trend by attracting $3.5 million in inflows, with smaller gains recorded in Ondo (CRYPTO:ONDO), Algorand (CRYPTO:ALGO), and Avalanche (CRYPTO:AVAX).
The ongoing outflows are attributed to global economic uncertainty and tariff concerns, particularly those initiated by U.S. President Donald Trump.
Despite a late-week market rebound triggered by a temporary tariff reversal, investor sentiment remains cautious.
"The wave of negative sentiment," noted by James Butterfill, Head of Research at CoinShares, since February has led to record outflows, highlighting the impact of geopolitical factors on crypto markets.
The recent rebound in asset prices and total assets under management, which rose to $130 billion, may signal a potential shift in market sentiment, but it remains to be seen if this trend will continue.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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