Digital asset investment products faced another difficult week, with recorded outflows of $795 million, marking the third consecutive week of declines.
A report released Monday by CoinShares highlighted that growing concerns stemming from recent tariff developments are significantly undermining investor confidence within the cryptocurrency sector.
Since the beginning of February, total outflows have amounted to $7.2 billion, erasing nearly all gains for 2024 thus far. Currently, net inflows for the year are just $165 million.
Crypto Markets Rebound After Trump Eases Tariffs
However, a late-week recovery in crypto prices contributed to an increase in total assets under management (AuM), which rose to $130 billion — an 8% rebound from the low recorded on April 8, following President Trump’s partial rollback of contentious tariffs.
Bitcoin experienced the most significant outflows last week, with $751 million withdrawn from the market.
Despite these withdrawals, Bitcoin still shows $545 million in year-to-date inflows.
Following Bitcoin, Ethereum reported outflows of $37.6 million, while other cryptocurrencies, including Solana, Aave, and Sui, also suffered minor losses.
Image source: Coinshares
Interestingly, even short-bitcoin products experienced outflows of $4.6 million, indicating a broader risk-off sentiment among investors rather than specific directional bets.
In contrast, some altcoins managed to attract attention: XRP led with inflows of $3.5 million, while Ondo, Algorand, and Avalanche also saw modest investor interest.
The persistent outflows reflect a cautious stance among digital asset investors, influenced by ongoing macroeconomic and geopolitical challenges.
Meanwhile, inflows into BlackRock’s crypto ETFs saw a sharp decline of 83% in the first quarter of 2025, following a robust finish to 2024.
Although the firm still garnered $3 billion in Bitcoin and Ether ETFs, investor enthusiasm waned significantly amid stagnant cryptocurrency prices and increasing market volatility, according to their first-quarter earnings report.
The inflows accounted for just 2.8% of iShares’ total for the quarter, indicating a broader shift in investor sentiment towards caution in light of current economic conditions.
Tariff headlines have shaken the world! Volatility takes center stage in this week’s market update, making a dramatic return to the markets.
In addition, small business optimism has deteriorated sharply: as a result, the probability of a US recession has risen to 64%. What… pic.twitter.com/mt1NXle81i
— CoinShares (@CoinSharesCo) April 11, 2025
The slowdown in the crypto market is reflected in the overall decline of BlackRock’s ETF business, where total iShares inflows plummeted over 70%, falling to $84 billion from $281 billion in the previous quarter.
Despite holding $50.3 billion in digital asset AuM, cryptocurrencies contributed less than 1% to BlackRock’s long-term revenue.
Market volatility and shifting investor sentiment in response to the Trump administration’s policies were cited as primary contributors to this retreat.
Mechanism Capital’s Andrew Kang Takes $200M Long Position on Bitcoin
Despite the sluggish performance of ETFs, many crypto traders maintain a bullish outlook on Bitcoin.
Andrew Kang, founder of Mechanism Capital, is one such trader, having reinforced his bullish stance by establishing a $200 million long position in Bitcoin.
Reports indicate that a wallet associated with Kang executed a second $100 million leveraged long bet on Bitcoin on Monday, increasing his total investment to $200 million.
This latest trade is associated with an estimated potential gain or loss of approximately $6.8 million, underscoring Kang’s confidence in a potential near-term Bitcoin rally.
Additionally, Bitwise Chief Investment Officer Matt Hougan reiterated his previous forecast, predicting that Bitcoin could reach $200,000 by the end of 2025, citing recent U.S. trade policy shifts under former President Trump as potential tailwinds for Bitcoin.
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