Digital asset investment products experienced $240 million in outflows last week, indicating a notable shift in market sentiment.
Most of these losses were driven by Bitcoin-related products, which saw outflows totaling $207 million, as detailed in the latest weekly report.
Nevertheless, despite the recent market fluctuations, Bitcoin’s year-to-date inflows remain robust at $1.3 billion.
What Caused the Outflows?
The report highlights that the outflows were largely a reaction from investors to escalating worries over a potential global trade war due to new tariffs imposed by the U.S. government.
Last week, the U.S. administration announced it would enforce additional trade tariffs, prompting retaliatory measures from countries such as China. This development unsettled global markets and heightened recession fears.
Amid these outflows, the Head of Research remarked that digital assets actually surpassed traditional equities in performance.
He stated:
“Total assets under management remained notably steady at $132.6 billion, reflecting a 0.8% increase for the week. This stability is particularly impressive in contrast to other asset classes like MSCI World equities, which experienced an 8.5% drop during the same timeframe.”
XRP Shines Amidst the Turmoil
During the past week, Bitcoin and Ethereum were at the forefront of the outflows, with Ethereum seeing negative flows amounting to $37.7 million.
Other major digital assets, including Solana and Sui, followed with outflows of $1.8 million and $4.7 million, respectively.
However, not all digital assets faced decline. The report highlighted that XRP stood out as a notable exception, continuing to attract inflows even in a tumultuous market.
The report indicated that XRP drew in $4.7 million in inflows, continuing its strong performance among investors. So far this year, XRP has attracted $173 million in new investments, marking it as one of the top-performing assets.
This upward momentum seems to be linked to speculation regarding a potential spot XRP ETF in the U.S. and increasing optimism about clearer regulatory frameworks under the Trump administration.
Meanwhile, Toncoin also enjoyed moderate growth, bringing in $1.1 million in new investments.
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