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Bitcoin and Ethereum Funds Lost $876 Million Despite Trump’s Strategic Crypto Reserve Announcement
Despite President Donald Trump’s executive order to establish a strategic bitcoin reserve for the United States, the crypto market has seen a sharp decline. In the past week alone, there has been a significant exodus from crypto-related funds, with investment products in the global crypto market experiencing net outflows of $876 million.
According to a report by CoinShares, major asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares saw their investment products suffer net outflows. This decline marks the fourth consecutive week of outflows, resulting in a total loss of $4.75 billion during this period.
In addition to the losses, assets under management at these funds have shrunk by $39 billion from their peak, bringing the total down to $142 billion, a record low since just after the U.S. presidential election in November.
The market decline is attributed to rising investor fear and the potential impact of tariffs on the global economy. The report also highlights that investors may have already filled their intended cryptocurrency allocations, resulting in reduced inflows.
Moreover, the recent unemployment report, which showed a rise in unemployment to 4.1%, has further fueled uncertainty and concern among investors. This increase in unemployment has put pressure on the Federal Reserve to choose between focusing on economic growth or managing inflation.
As a result, there is approximately a 3% chance that the FOMC will decide to lower interest rates.
