Global Crypto Fund Inflows Dip Significantly

Global crypto funds managed by firms like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares experienced net inflows of $527 million last week, a drastic 72% decrease from $1.9 billion the previous week, primarily due to concerns regarding potential trade tariffs from President Trump and disruptions caused by DeepSeek, as stated by CoinShares.

“Intraweek flows reflected volatile investor sentiment, heavily influenced by broader market concerns, such as the DeepSeek news, which triggered $530 million in outflows on Monday,” said James Butterfill, Head of Research at CoinShares, in a report released on Monday. However, the market recovered later in the week, resulting in net inflows exceeding $1 billion.

While worries about prospective tariffs from President Trump loomed ahead of Friday’s close, his official announcement over the weekend isn’t yet reflected in global crypto fund flows but is anticipated to have a significant impact in the upcoming days.

In response to President Trump’s planned implementation of 25% tariffs on imported goods from Canada and Mexico, along with 10% tariffs on Canadian energy and Chinese goods, Bitcoin plunged more than 10%, dropping to around $91,500 from its Saturday peak. Other cryptocurrencies experienced more severe declines; Ether plummeted approximately 36%, and the GMCI Meme index for leading memecoins fell by 40%. Currently, Bitcoin trades at $94,983 and Ether at $2,568 as per The Block’s Prices Page.

“Given the $44 billion in inflows seen in 2024, $5.3 billion year-to-date, and significant price gains, the current sell-off is not unexpected,” Butterfill commented on Monday.

Bitcoin Dominates; XRP Funds Second-Best Performing

Bitcoin-based funds led global net inflows last week, adding $486 million, while short-Bitcoin products also gained $3.7 million amid the market fluctuations. The U.S. spot Bitcoin ETFs contributed $559.5 million to the total net inflows, according to data compiled by The Block.

In contrast, Ethereum-based funds ended the week with net zero flows due to their greater exposure to the tech sector and global growth concerns, Butterfill noted. The U.S. spot Ethereum ETFs saw $45.3 million in net outflows last week, according to The Block‘s data dashboard.

XRP-based funds emerged as the second-best performing altcoin investment product globally, securing an additional $15 million in inflows last week, bringing year-to-date inflows to $105 million.

Regionally, the U.S. dominated with $474 million in overall net inflows, while Europe-based funds added $78 million. Conversely, Canadian crypto investment products experienced net outflows of $43 million, likely due to the impending trade tariffs imposed by the U.S., Butterfill mentioned.