Digital Asset Funds Experience Significant Outflows Amid Global Uncertainty

According to CoinDesk, investors are increasingly withdrawing from digital assets as these investments face declining popularity due to rising geopolitical and economic uncertainties. Last week alone, global digital asset funds saw a loss of $1.7 billion, as reported by CoinShares. This brings the total outflow over the past five weeks to $6.4 billion. In the United States, bitcoin (BTC) exchange-traded funds (ETFs) have experienced the longest streak of weekly outflows since their debut in January 2024, with investors pulling out more than $5.4 billion during this period. U.S. President Donald Trump has expressed support for cryptocurrencies, notably through the order to establish a Bitcoin Strategic Reserve. However, this support has not been sufficient to alleviate concerns stemming from tariff-induced trade tensions and monetary policy challenges. Despite the presidential backing, the digital asset market continues to face significant pressure. Bitcoin has seen a substantial decline, dropping over 21% in the last three months to approximately $83,000. The broader CoinDesk 20 Index (CD20) has also suffered, losing around 34.6% of its value during the same timeframe. These figures highlight the ongoing volatility and uncertainty within the digital asset sector, as investors remain cautious amid the current global economic landscape.