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Global crypto investment products experienced a sharp $795 million in outflows last week, according to a new report from CoinShares. The sudden pullback comes amid escalating concerns over potential trade disruptions following former President Donald Trump’s renewed push for aggressive tariff policies, should he return to office.
The report outlines that the bulk of the outflows were concentrated in Bitcoin-related products, which saw $800 million in weekly withdrawals. Other digital assets, including Ethereum, Solana, and multi-asset investment vehicles, experienced relatively smaller, though still notable, outflows. The trend marks one of the largest weekly exits from crypto funds so far in 2025.
Analysts suggest that investors may be responding to the broader uncertainty triggered by Trump’s statements, which reignited fears of a new wave of trade protectionism. The potential for a renewed trade war—particularly targeting China—has injected volatility into global markets, sending many institutional investors toward safer, more predictable assets.
“This week’s outflows highlight the sensitivity of the crypto market to macroeconomic and geopolitical signals,” CoinShares said in its commentary. “Trump’s tariff rhetoric has clearly impacted sentiment among professional investors managing crypto exposures.”
Despite the heavy withdrawals, trading volumes in crypto investment products remain relatively high, suggesting that market participants are repositioning rather than exiting the space entirely. Bitcoin, while hit hardest by fund outflows, has held up in spot markets, indicating a degree of resilience among retail and long-term holders.
The timing of the outflows also coincides with a strengthening U.S. dollar and rising Treasury yields—two factors that typically exert downward pressure on risk-on assets like cryptocurrencies. Some analysts believe that the combination of political uncertainty and tightening financial conditions could lead to more volatility in the near term.
Nevertheless, some digital asset advocates argue that Bitcoin’s long-term thesis as a hedge against geopolitical instability remains intact, and that short-term fund movements do not undermine the broader adoption trajectory.
“The crypto market is undergoing a stress test,” said one strategist at a digital asset firm. “As traditional finance reacts to the return of protectionist narratives, Bitcoin may eventually benefit from the same forces driving current outflows.”
With the 2024 U.S. presidential election season heating up, and Trump’s economic positions gaining renewed attention, investors are likely to remain cautious. Whether crypto funds will continue to bleed capital or bounce back in the coming weeks may depend as much on Washington’s rhetoric as on market fundamentals.
