Investors have pulled out a significant amount of money from crypto funds totaling $795 million last week. This marks the third consecutive week of sell-offs in the digital asset market. Bitcoin led the outflows with $751 million, followed by Ethereum with $37.6 million. The uncertainty surrounding tariffs has been linked to the extended decline in crypto investments.
BlackRock’s iShares ETF products experienced the highest investor withdrawals, with both BTC ETFs and ETH ETFs seeing $342 million outflows last week. Overall, BlackRock has lost $412 million in the month-to-date period, with Grayscale products also seeing significant outflows totaling $187 million. However, XRP-based and multi-asset funds stood out amidst the decline, with investors showing modest demand for these assets.
XRP saw $3.4 million inflows last week, and the overall MTD flows for the asset stood at $1.5 million. This suggests that investors have been preferring XRP and multi-asset funds, such as crypto index ETFs, over individual assets like BTC and ETH in the first half of April. Additionally, there were record inflows into the new 2x Tecrium XRP ETF, indicating continued interest in XRP despite overall market downturns.
Macro analysts have projected that the decline in crypto investments could continue, with some pointing to a recent speech by Fed chair Jerome Powell as a potential catalyst for further risk aversion. The speech suggested a preference for patience amidst uncertainty, which could be negative for risk assets including crypto. This perspective raises concerns about the future direction of the digital asset market in the coming months.
