The broader financial market is experiencing visible distress, showcased by the selloff in digital asset funds, while listed crypto firms saw resilience in their shares.
U.S.-based global crypto funds recorded an outflow of $240 million as investors pulled out their investments following uncertainty triggered by trade tariffs. James Butterfill, CoinShares Head of Research, noted most of these funds were issued by asset managers such as BlackRock, Grayscale, and Bitwise.
Bitcoin Bears the Brunt, Even as AUM Inches Higher
Among the cryptocurrency assets, Bitcoin (BTC) led the outflow with $207 million, thereby reducing the year-to-date inflows to $1.3 billion.
However, this development did not negatively impact the total assets under management (AUM). The AUM registered a slight increase despite the outflow.
According to Butterfill, AUM remained stable at $132.6 billion, marking a 0.8% increase in the course of the week. The increase is notable compared to other asset classes, such as MSCI World equities, which recorded a decline of 8.5% within the same time frame.
Analysis of the digital market performance shows that the crypto fund flow reflected the trading activities and asset performances. Most assets, including Bitcoin, recorded a huge sell-off as U.S. President Donald Trump issued tariffs on trade partners.
The ripple effect of concerns about the economic impact of those tariffs hit the cryptocurrency market. Bitcoin, for instance, immediately declined by 6%.
Meanwhile, net outflows recorded within the last week, spanning March 31 to April 4, also wiped out the $226 million achieved in the previous week.
Crypto Capital Movement by Regions
Overall, the U.S. led capital outflow by region with a total outflow of $210 million. The largest drawdown came from U.S.-based Bitcoin. The funds issued by BlackRock, Grayscale, and Bitwise recorded the largest selloffs.
The other big outflow occurred in Germany, with $17.7 million. Sweden and Switzerland also registered outflows in the crypto market.
However, investors in Canada and Brazil injected $4.8 million and $1.2 million, respectively, into crypto as they looked to “buy the dip.” Australia and Hong Kong followed a similar pattern of inflows into digital assets.
Although some altcoins also experienced capital inflow, investors reduced their funds to notable coins like Ethereum and Solana. The outflow on Ethereum stood at $37.7 million, while Solana had $1.8 million.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
