- Digital asset products have experienced record outflows of $7.2 billion since February amid negative market sentiment.
- Last week alone saw $795 million in outflows from crypto funds, including $751 million from Bitcoin ETFs.
- Despite institutional pessimism, Bitcoin has shown resilience against stock indices, recently approaching $85,000.
Crypto funds have experienced their most dramatic period of outflows on record, shedding $7.2 billion worth of assets since February due to a “wave of negative sentiment,” according to CoinShares Head of Research James Butterfill in a report published Monday. Last week alone saw $795 million exit tracked crypto funds, with Bitcoin ETFs accounting for $751 million of those outflows.
Despite these concerning figures, Butterfill advised against excessive alarm. “I don’t see this as anything particularly ominous or alarming at this point,” he told Decrypt, noting that Bitcoin has generally outperformed equities since “Liberation Day.”
Market Performance Amid Tariff Uncertainty
Bitcoin has maintained strong performance against stock indices despite recent volatility triggered by U.S. President Donald Trump‘s tariff announcements. After initial gains when the White House suggested computer chips and smartphones would be exempt from levies, Bitcoin experienced a downturn following Trump’s clarification that “NOBODY is getting ‘off the hook.'”
As of Monday, Bitcoin approached $85,000, showing a 0.4% increase over the previous 24 hours according to CoinGecko. This performance came as the tech-heavy Nasdaq edged up 0.88%, according to Yahoo Finance.
Institutional Hesitancy vs. Retail Enthusiasm
Year-to-date figures show investors have allocated $545 million to Bitcoin funds and $241 million to Ethereum funds. However, Butterfill noted a divergence between retail and institutional behavior.
“Retail [investors] are clearly buying now, but we’re not seeing that on the institutional side,” he explained. “It does suggest that institutions are not seeing this as an opportunity just yet.” This institutional pessimism has continued for three consecutive weeks.
While most cryptocurrencies saw fund outflows last week, XRP bucked the trend with $3.5 million in inflows. This comes as the first XRP-related ETF, the Teucrium 2x Long Daily XRP ETF, debuted last Tuesday in the U.S. Meanwhile, Ethereum and Solana products experienced outflows of $38 million and $5 million, respectively.
The overall investment picture for crypto products in 2025 shows a stark contrast to last year’s performance. After attracting $44 billion in investments during 2024, crypto products have received just $165 million so far this year, according to CoinShares data.
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