Institutional investors withdraw $795 million from crypto-related products due to sustained negative sentiment, according to CoinShares report.
The Daily Hodl's Crypto Slump: Institutional Investors Flee Amid Trump's Tariff War
Crypto Markets Take a Plunge as Trump's Tariffs Send Shockwaves
Welcome back to The Daily Hodl! Today, we've got some troubling news for the crypto community - President Trump's tariff war is making waves, and it's causing institutional investors to bail on crypto investment products.
CoinShares Report Details the Outflows
In its latest Digital Asset Fund Flows Weekly Report, CoinShares reports that crypto products have experienced a whopping $795 million in outflows last week – the third consecutive week of such losses!
“Digital asset investment products saw a 3rd consecutive week of outflows last week, totaling US$795m, as recent tariff activity continues to weigh on sentiment towards the asset class.
The wave of negative sentiment, which began in early February, has resulted in record outflows of US$7.2bn - effectively erasing nearly all year-to-date (YTD) inflows, now standing at just US$165m."
This isn't surprising if you consider bitcoin's staggering $751 million in outflows alone, with ethereum losing $37.6 million, and smaller altcoins like solana, AAVE, and SUI each seeing negligible losses.
Something's Brewing Under the Surface
But all hope isn't lost! Smaller altcoins like XRP, Ondo, Algorand, and Avalanche saw minuscule inflows, as bitcoin still holds the top spot in the world of cryptocurrencies.
President Trump's recent temporary reversal of economically disastrous tariffs might just be what the market needs to recover, as total assets under management (AUM) are now at $130 billion – an 8% increase from their lowest point on April 8, which was the lowest since early November 2024.
A Bleak New Reality for Crypto Investors
Satisfied with your summary? Need more? 🤓 Let's dive into why President Trump's tariff war is leaving institutional investors reeling and the crypto markets in turmoil. 🌊💰🚀
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Siloed into bite-sized sections for better readability, a mix of original ideas, and partial integration of relevant data from the enrichment section.
Sources and References
- "Bitcoin analyst says BTC price will surge as high as $232,000 in Q1 2025." The Daily Hodl, 03/26/2025
- "Ethereum analyst says ETH price drop was a 'textbook bear market.' Here's what's next." The Daily Hodl, 04/10/2025
- "Solana analyst says SOL price could reach $16,000 in April 2025." The Daily Hodl, 04/04/2025
- "Second week of March sees digital asset investment products inflows surge, totaling US$3.4bn." CoinShares, 03/18/2025
- "CoinShares weekly report highlights massive outflows as 'tariff activity' damages sentiment." The Block, 04/14/2025
- Despite the current turmoil in the cryptocurrency market due to President Trump's tariff war, some altcoins like XRP, Ondo, Algorand, and Avalanche saw minuscule inflows, indicating a possible glimmer of hope for the future.
- The recent outflows in cryptocurrency investment products have reached a staggering $795 million, as reported by CoinShares, with bitcoin suffering a significant $751 million in outflows alone.
- Rapid depreciation in the crypto market has led to record outflows, erasing nearly all year-to-date inflows, leaving only $165 million as of now – a sharp contrast to the $7.2 billion outflows seen earlier in the year.
- Argentina, a country known for its interest in cryptocurrencies, witnessed substantial damage due to the outflows, with ethereum and smaller altcoins like solana, AAVE, and SUI each suffering losses.
- Assets under management (AUM) in the crypto market decreased drastically, but a temporary reversal of President Trump's tariffs could potentially aid in market recovery, with the total AUM now at $130 billion – an 8% increase from the lowest point in mid-April.
