The digital asset market had a challenging week with $795 million in outflows recorded across crypto investment products, according to CoinShares’ latest weekly report. This marks the third consecutive week of declines, reflecting growing caution among investors amidst global economic headwinds. Total outflows since early February have reached $7.2 billion, nearly erasing 2025’s earlier gains, leaving net inflows for the year at a modest $165 million. James Butterfill, CoinShares’ Head of Research, attributed investor caution to renewed tariff tensions between the United States and China.
Last week, the US and China reignited their tariff dispute, imposing a 25% levy on incoming goods. Although President Trump briefly paused broader tariff actions for 90 days, the damage to investor sentiment had already been done. Short-term relief helped digital assets under management climb to $130 billion, an 8% rebound from the April 8 low. Bitcoin products experienced the largest outflows at $751 million, but still maintain $545 million in year-to-date inflows. Major Bitcoin ETF issuers like BlackRock, Grayscale, and Fidelity saw significant fund exits during this period.
In contrast, XRP continued to draw in fresh capital with inflows of $3.5 million last week, boosting its year-to-date inflows to $176 million, making it one of the best-performing digital assets in 2025. The optimism over potential regulatory reforms and speculation around a spot XRP ETF in the US have contributed to XRP’s inflows this year. Other altcoins like Ondo, Algorand, and Avalanche also posted modest inflows, indicating that niche investor interest in select assets remains intact despite broader market weakness.
As Bitcoin dominates outflows, Ethereum posted the second-largest outflows at $37.6 million, while other altcoins like Solana, Aave, and Sui also saw declines. Short Bitcoin products experienced $4.6 million in outflows, suggesting that investors are not simply rotating into bearish positions. Despite the challenges faced by the digital asset market, niche investor interest in certain altcoins and the ongoing inflows into XRP point towards resilience and optimism within the industry. The current climate of caution and uncertainty underscores the importance of monitoring global economic developments and regulatory changes for investors navigating the evolving landscape of digital assets.
