Crypto ETPs See $240M Outflow Amid US Trade Tariff Fears

Cryptocurrency exchange-traded products (ETPs) faced a significant downturn last week, with investors pulling out approximately $240 million in capital. This marked a reversal from the previous two weeks, which saw inflows totaling $870 million, leaving the total holdings in digital asset ETPs at about $133 billion. The outflows are largely attributed to investor caution in response to global trade tariffs imposed by the United States, which have raised concerns about their potential impact on global economic growth. James Butterfill, the head of research at CoinShares, highlighted this as a key factor influencing investor sentiment.

Bitcoin ETPs were particularly affected, with $207 million in weekly outflows. This shift resulted in monthly flows turning negative for the first time this year, with a net outflow of $138 million over the past 30 days. Despite this setback, Bitcoin ETPs have still seen significant inflows year-to-date, totaling $1.3 billion. Ether (ETH)-linked ETPs also faced outflows, with $38 million withdrawn last week, although they continue to hold $279 million in year-to-date inflows. Multi-asset ETPs and short Bitcoin ETPs saw $144 million and $26 billion in year-to-date outflows, respectively, despite minor inflows last week.

Grayscale Investments, a major crypto investment firm, led the losses among issuers last week, with $95 million withdrawn from its products. Grayscale’s year-to-date outflows now stand at $1.4 billion, the highest among all ETP providers tracked. In contrast, iShares ETFs by BlackRock maintained $3.2 billion in year-to-date inflows after seeing $56 million in outflows last week. ProShares and ARK Invest are the only other major issuers that still have inflows year-to-date, amounting to $398 million and $146 million, respectively.