Global cryptocurrency exchange-traded products (ETPs) saw outflows of $240 million last week, as investors withdrew investments due to concerns over new US trade tariffs. This is a reversal after two weeks of inflows totalling $870 million. According to CoinShares, bitcoin-related ETPs were the most affected, with outflows of $207 million, leaving total assets under management at $132.6 billion – a marginal increase of 0.8% from the previous week.
Withdrawals were mainly concentrated in the US, where crypto funds saw outflows of $210 million. Germany saw outflows of $17.7 million, while Switzerland and Sweden also recorded withdrawals. Canada and Brazil, on the other hand, had a more positive outlook, with $4.8 million and $1.4 million flowing into crypto funds, respectively. There were also smaller inflows in Hong Kong and Australia.
Despite the overall outflows, bitcoin-related products still saw investments increase by $1.3 billion year-on-year. However, Bitcoin saw its price drop by more than 6% last week, primarily due to tariff concerns and the macroeconomic uncertainty caused by them. Apart from Bitcoin, other cryptocurrencies like Ethereum, Solana, and Needle also saw significant withdrawals. Ethereum saw withdrawals of $37.7 million, while Solana and Needle saw withdrawals of $1.8 million and $4.7 million, respectively. In contrast, smaller tokens like Toncoin saw some positive changes with inflows of $1.1 million. Grayscale’s Bitcoin Fund led the withdrawals with $95 million in withdrawals last week. This brought Grayscale’s year-to-date withdrawals to $1.4 billion, the highest among all ETP providers. BlackRock’s iShares ETF, on the other hand, still had inflows of $3.2 billion despite withdrawals of $56 million last week. Other major players such as ProShares and ARK Invest also saw continued inflows for the year, although their amounts were smaller with $398 million and $146 million, respectively.
While crypto ETPs saw declines, the cryptocurrency equity market showed more resilience. Blockchain stocks including Coinbase saw inflows of $8 million for the second consecutive week, reflecting investor confidence in the sector despite broader market concerns. Industry insiders such as Redstone’s Marcin Kazmierczak said the situation reflects broader market dynamics rather than a specific drop in crypto assets. The overall sentiment suggests the crypto sector remains relatively strong, with continued institutional growth and real-world applications.
While the global crypto fund market experienced notable outflows last week, particularly from bitcoin-related products, blockchain equities continued to attract investor interest.
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