Global Crypto Investment Outflows Reach $795 Million Amid Tariff Impacts, Report

- Tariff measures led to sustained negative sentiment, wiping out nearly all year-to-date inflows and driving outflows of $7.2 billion since early February. - Bitcoin experienced the largest outflows at $751 million, while a late-week tariff reversal spurred an 8% rise in total assets under management.

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Meghna Chowdhury
Meghna Chowdhury
Meghna is a Journalism graduate with specialisation in Print Journalism. She is currently pursuing a Master's Degree in journalism and mass communication. With over 3.5 years of experience in the Web3 and cryptocurrency space, she is working as a Senior Crypto Journalist for UnoCrypto. She is dedicated to delivering quality journalism and informative insights in her field. Apart from business and finance articles, horror is her favourite genre.

Global crypto investment products managed by asset managers experienced net outflows totaling $795 million last week. Major asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares registered notable investment losses, CoinShares report states. 

Recent aggressive tariff measures initiated by President Trump have dampened overall investor sentiment towards digital asset investments significantly.

Influence of Tariff Activity

Tariff activity has generated persistent negativity that began early February, wiping out year-to-date inflows completely. 

Negative sentiment now totals outflows of $7.2 billion since early February, as reported by experts. Current year-to-date inflows remain remarkably low, standing at a mere $165 million across all available products.

Asset Movements and Specifics

The report mentioned that a late-week price rebound slightly increased overall total assets under management considerably. Assets under management rose to $130 billion after the recent temporary tariff reversal by President Trump. 

Bitcoin experienced the highest outflows among all assets, with $751 million in recent net withdrawals reported. Short-bitcoin investment products also faced significantly high outflows totaling $4.6 million during the same reporting period. 

Ethereum recorded the second largest outflows with a notable net reduction of $37.6 million last week. Other major cryptocurrencies, like Solana, Aave, and Sui, experienced relatively lower outflows during this challenging market period. 

Smaller altcoins saw minor positive inflows led by XRP with a total increase of $3.5 million. Other coins, such as Ondo, Algorand, and Avalanche, observed modest inflows during this subdued investment week.

Also Read: Ethereum Price Plummets to $1400 Triggered By Surging Trade Tensions & Tariffs Amid Worst Stock Market Crash Since 2008

Market Reaction and Analysis

CoinShares Head of Research James Butterfill noted tariff impact remains the main reason behind investor withdrawals. The report highlighted that negative sentiment wiped out nearly all year-to-date inflows during this period. 

Despite the heavy outflows, total assets under management increased by 8% after tariff reversal actions. Investors continue to remain remarkably cautious as global market conditions challenge long-term digital asset growth trends.

Final Thoughts

Market participants must adapt diverse strategies as tariff policies significantly influence digital asset investment flows worldwide. Investors and asset managers must closely monitor evolving political signals impacting global crypto market dynamics consistently. 

The latest net outflow figures underline the volatile nature of the digital asset investment environment today. Investors must prepare for further market adjustments as strong policy shifts continue to shape investment sentiment. 

Financial analysts predict that evolving policies will continue to create hurdles for many digital asset ventures. Market volatility remains high as investors react swiftly to global political and economic developments with caution.

Also Read: U.S. Tariff Policies Prompt Bitcoin Miners to Accelerate Equipment Imports from China, Malaysia, and Thailand

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