Recent Tariff Increases and Global Cryptocurrency Sell-Offs
Recent tariff increases by U.S. President Donald Trump have led to substantial sell-offs in global cryptocurrency investment products. According to a recent weekly report released by CoinShares, a total of $795 million exited cryptocurrency-based funds last week. This marks a total outflow of $7.2 billion since February, effectively erasing nearly all inflows recorded since the beginning of the year. However, by the end of the week, a minor recovery occurred, boosting the total asset value under management to $130 billion.
Major Withdrawals from Bitcoin Funds
The majority of these outflows came from U.S.-based funds, which experienced an outflow of $763 million. In contrast, funds in Switzerland, Hong Kong, Sweden, and Germany saw a combined net outflow of $34.3 million. Countries like Canada, Brazil, and Australia recorded only a modest inflow of $2.7 million into their cryptocurrency-based funds.
Bitcoin-based investment products suffered the highest losses, with a net outflow of $751 million. Despite still having approximately $545 million in inflows since the start of the year, these products could not withstand last week’s pressures. Furthermore, after dipping below $75,000 at the start of the week, Bitcoin’s price surged above $84,000 by Friday.
U.S.-based spot Bitcoin ETFs alone saw an outflow of $707.9 million last week. The negative flow throughout the week indicates that institutional investors remain cautious in their strategies.
Ethereum and Altcoin Investment Funds Also Affected
Ethereum 
$1,675-based investment funds experienced significant withdrawals, with a net exit of $37.6 million last week. Additionally, U.S. spot Ethereum ETFs recorded a notable outflow of $82.5 million, suggesting ongoing short-term uncertainty among Ethereum investors.
Moreover, popular altcoin investment products, including Solana 
$134, Aave, and Sui, experienced modest outflows. Conversely, there were small inflows into investment products based on XRP, Ondo, Algorand, and Avalanche, indicating that investor interest in certain altcoin projects and ecosystems persists.
On the macroeconomic front, China’s announcement of a 125% tariff in response to U.S. tariffs initially heightened tensions. However, potential exemptions in strategic sectors such as electronics and semiconductors created some optimism in the markets. According to BRN analyst Valentin Fournier, the steady inflation rate and possible interest rate cuts have allowed cryptocurrencies to regain momentum.
