Crypto Funds Lose $795M Amid Tariff Fears, Bitcoin Outflows Hit $751M

Crypto investment funds experienced a significant setback last week, with outflows totaling $795 million. This substantial withdrawal was primarily driven by concerns over tariff disputes, which have created a climate of uncertainty in the global markets. Bitcoin and Ethereum, two of the most prominent cryptocurrencies, were at the forefront of these withdrawals, reflecting investor apprehension about the potential impact of tariff tensions on the broader financial landscape.

Bitcoin saw the highest weekly outflows among digital assets, with $751 million withdrawn. Month-to-date losses reached $890 million. However, year-to-date flows remain positive at $545 million, and its assets under management are valued at $112.96 billion. Ethereum also faced steady outflows, totaling $37.6 million for the week. Ethereum’s month-to-date losses were slightly higher at $89.1 million. Still, the asset retains $241 million in YTD inflows. Ethereum’s assets under management are currently valued at $7.84 billion.

Short-Bitcoin products, which are designed to profit from price declines, recorded $4.6 million in outflows. This shows that traders are scaling back bets on further downside, despite recent price pressure. Solana recorded $5.1 million in weekly outflows, bringing its total for the month to $6.2 million. Despite recent withdrawals, it holds $79 million in year-to-date inflows, with assets under management at $1.08 billion. Other altcoins also saw reduced investor activity. Aave registered $0.78 million in outflows, Sui followed with $0.58 million, and both Cardano and Litecoin each recorded $0.3 million in withdrawals over the week.

In contrast, XRP attracted inflows of $3.4 million. It has brought in $176 million in inflows so far this year, and its total managed assets are valued at $883 million. Other assets like Ondo, Algorand, and Avalanche also saw small inflows. Multi-asset funds added $1.1 million, showing some continued interest in diversified crypto exposure.

The outflows have effectively erased most of the gains that crypto funds had accumulated in 2025, highlighting the volatility and sensitivity of the crypto market to external economic factors. Investors, already wary of the potential risks associated with cryptocurrencies, have been further spooked by the escalating trade disputes, leading to a mass exodus from these investment vehicles.

The situation has sparked panic among investors, who are now questioning the stability and long-term viability of spot Bitcoin ETFs. The sudden outflows have raised concerns about the ability of these ETFs to withstand market turbulence, particularly in the face of geopolitical uncertainties. The crypto market, known for its rapid fluctuations, has once again demonstrated its vulnerability to external shocks, underscoring the need for cautious investment strategies.

The tariff turmoil has added another layer of complexity to an already volatile market, making it increasingly challenging for investors to navigate the crypto landscape. As the situation continues to evolve, it remains to be seen how crypto funds will adapt to these new challenges and whether they can regain the trust of investors in the coming months. The outflows serve as a stark reminder of the interconnected nature of global markets and the far-reaching impact of trade disputes on various asset classes, including cryptocurrencies.