Crypto Funds Experience $508 Million in Weekly Outflows Amid Market Uncertainty
According to a CoinShares report, crypto investment products saw $508 million in weekly outflows, reflecting ongoing macroeconomic concerns. Uncertainty surrounding trade tariffs, inflation, and monetary policies continues to impact the market.
Bitcoin dropped back to the $95K range, while the total crypto market cap declined by over 1%, settling at $3.14 trillion. Major altcoins, including Ethereum (ETH), Solana (SOL), XRP, BNB, Cardano (ADA), and Dogecoin (DOGE), also faced losses as the market struggled to maintain momentum.
Institutional Crypto Funds See Significant Outflows
Institutional investment funds such as iShares, Grayscale, Bitwise, Fidelity, and ProShares recorded a combined $508 million in outflows this week. CoinShares attributes this to investor caution following recent economic policies introduced by U.S. President Donald Trump, including tariffs and monetary policy decisions.
Bitcoin Dominates With $571 Million in Weekly Outflows
CoinShares’ data shows that Bitcoin led the outflows, experiencing a $571 million withdrawal in just one week. Conversely, XRP saw the highest inflows, attracting $38.3 million in investments. However, the overall trend remains negative, with the last two weeks accumulating a staggering $924 million in outflows. 
U.S. Outflows Contrast With Positive Sentiment in Europe & Australia
Regionally, the United States accounted for $560 million in outflows, highlighting the influence of U.S. politics on the crypto market. Meanwhile, investor sentiment remained positive in Germany, Switzerland, Australia, and Sweden, indicating regional variations in crypto investment trends.
Expert Insights on Market Caution
James Butterfill, Head of Research at CoinShares, commented on the situation:
“We believe investors are exercising caution following the U.S. Presidential inauguration and the consequent uncertainty around trade tariffs, inflation, and monetary policy.”
Bitcoin Adoption Efforts Continue in U.S. States
Despite overall market hesitancy, several U.S. states are moving forward with Bitcoin-related legislation. Georgia recently proposed a second Bitcoin reserve bill to include BTC in its state treasury.
While President Trump aims to establish the U.S. as a crypto-friendly nation, his trade tariffs and delayed Bitcoin reserve strategy appear to be negatively impacting investor sentiment.
