Crypto Investment Pullout: alarming $795 million withdrawal triggers investor concern
The crypto world is yet again reminded of its unpredictability as it sees the exit of a staggering amount of $795 million from various digital asset investment products in a week. This information comes directly from the weekly report given by the analysis giant in the crypto industry,CoinShares.
For the third week straight, there’s been a decline in the crypto market, illustrating the wary attitude adopted by investors amidst fluctuating economic conditions worldwide.
The persistence of negative vibes pushed the total outflows since the start of February to a hefty sum of $7.2 billion. As a result, the previous gains of 2025 were almost wiped out, with a small net inflow of just $165 million remaining for this year.
The US-China Tariff Tensions Reignited
Jame Butterfill, the Head Researcher at CoinShares, cites the recent rekindling of tariff disagreements between the United States and China as a significant source of investors’ heightened caution. The two superpowers have resumed their tariff clash, each implementing a 25% levy on incoming goods.
Although the broader tariff implementations were put on hold for 90 days by President Donald Trump, the confidence of investors had already been dented significantly.
CoinShares reported that short-term relief saw the digital assets under their management (AuM) bounce back by 8%, hitting $130 billion, from its lowest level since November 2024 of April 8.
Bitcoin loses big, while XRP defies the downswing trend
When it comes to the specific crypto-assets, Bitcoin was severely hit with outflows worth $751 million. However, Bitcoin still had a year-to-date inflow of $545 million. Notable Bitcoin ETF issuers, such as BlackRock, Grayscale, and Fidelity, treaded the same path with a significant amount exiting during this detrimental period.
Bitcoin products short experienced outflows totaling $4.6 million, pointing to the fact that investors weren’t merely changing into bearish positions.
The second largest outflow came from Ethereum with a $37.6 million exit. Other alternate crypto-assets like Solana, Aave, and Sui weren’t spared either, seeing a decline of $5.1 million, $780,000, and $580,000 respectively.
XRP defies the trend
A break from this ominous trend came in the positive performance of XRP, which attracted fresh capital with last week’s inflow of $3.5 million. Its yearly inflow has risen to a boasting $176 million thus proving itself as one of the top performers in the digital asset market in 2025.
The remarkable inflow of XRP is attributed to growing optimism about an expected overhaul in regulatory policies and rumors regarding spot XRP ETF entry in the US.
Small inflows present in some altcoins
Lastly, a few alternative coins – Ondo, Algorand, and Avalanche, recorded modest inflows of approximately $250,000 each, suggesting a retained niche investor interest in select assets despite the overall market weakness.
Amidst such tumult, the expectation is for a more optimized and efficient regulatory environment that could potentially lead to a stronger and more transparent crypto market. Investing wisely with an understanding of the volatile nature of the market is most advised.
