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- Digital assets saw $240M in redemptions due to U.S. trade tariff uncertainty, but AuM remained steady at $132.6B.
- While traditional assets faced major losses, crypto investments, especially in Canada, showed resilience amid volatility.
- Blockchain equities saw $8M in inflows, signaling renewed investor interest despite broader market downturns.
Digital asset investment products had net redemptions of $240 million in the prior weekly period, mainly due to a rising uncertainty regarding the trade tariffs in the US. These tariffs have potentially negative impacts on the growth of the international economy. However, the total market assets under management (AuM) remained constant at $132.6 billion, a minor 0.8% weekly rise. Crypto investments proved more resilient than the overall markets in that.
Crypto Resilience Amid Declines
However, the declines were worst seen in traditional assets. MSCI World equities fell by 8.5% over the same time, showing that the cryptos had been rather stable. The redemptions from crypto products were not restricted to a specific geographical location. The United States made the highest withdrawals, $210 million, and Germany $17.7 million. Nonetheless, the Canadian investors saw the market fluctuation as an advantage.
Investors in Canada invested $4.8 million into crypto that reversed the downtrend seen in other regions. This indicates that some countries are actually using the current economic recession to invest in cryptocurrencies. The largest outflows were observed for Bitcoin, dominating the market of digital assets, which lost $207 million. Nevertheless, net outflow this year hit $932 million, while year to date inflows have been recorded at $1.3 billion, which indicates that investors remain bullish in the crypto asset.
Mixed Performance in Digital Assets
Other digital assets too posed gains and losses in the same manner. Ethereum, which stands in second place by capitalization, recorded $37.7 million outflows. Solana and Sui experienced $1.8 million and $4.7 million in withdrawals. However, several small and specific tokens saw an increase in value. Ton Coin’s investments reached $ 1.1 million, which indicates that the representatives of the segment are still attracting investments from buyers to some extent.
Novelties related to blockchain equities or stocks associated with businesses using blockchain technologies have demonstrated certain positive trends. This week, repeat the uptrend of last week for these stock with inflow of $8 million.
This sector was down recently and it is still considered by many investors as a possible opportunity to enter the market. This shows that there is a shift of investors towards investing in blockchain business which is deemed undervalued by some investors.
The crypto market saw red in outflows since economic volatility has hit the world, but the figures are strong. Bitcoin and other large-cap assets had outflows; however, small-cap assets and blockchain equities had inflows. The persistent investors’ focus on blockchain stocks means that there are still long-term opportunities in spite of short-term fluctuations.
