$2B Crypto Rush Crashes on Tariff Threats

Digital asset investment products pulled in $2.17 billion last week, the strongest weekly haul since October 2025, driven by Bitcoin (BTC) and broad altcoin demand. Yet January 16 saw $378 million in outflows as geopolitical tensions flipped sentiment.

With AUM topping $193 billion, traders are wondering if this is a sign of resilient institutional appetite amid macro risks, whether these inflows are a bullish rebound for the cryptocurrency market, or just a brief rally before more volatility.

Record Inflows Amid Mixed Sentiment

CoinShares’ latest report, published on January 19, shows digital asset products recording $2.17 billion in net inflows for the week, the largest since mid-October 2025. 

Early-week strength dominated, but sentiment soured on January 16 with $378 million outflows tied to diplomatic escalations over Greenland, renewed U.S. tariff threats against European nations, and speculations that policy dove Kevin Hassett may stay in a key Fed-related role. Per the report:

“Inflows were stronger earlier in the week, but sentiment turned negative on Friday, with US$378m of outflows following diplomatic escalation over Greenland and renewed threats of additional tariffs.”

Bitcoin led decisively with $1.55 billion inflows, pushing its AUM to nearly $150 billion. Ethereum (ETH) followed at $496 million despite ongoing CLARITY Act discussions that could limit stablecoin yields. Altcoins showed broad participation, in which XRP drew $69.5 million, Solana (SOL) $45.5 million, Sui (SUI) $5.7 million, plus smaller gains in LIDO and Hedera (HBAR).

Regionally, the U.S. dominated with $2.05 billion inflows, followed by Germany ($63.9 million), Switzerland ($41.6 million), Canada ($12.3 million), and the Netherlands ($6 million). Providers like iShares (BlackRock) led with strong weekly figures, whereas total AUM reached $193.6 billion.

Blockchain equities also shone, attracting $72.6 million in inflows, highlighting sustained ecosystem interest beyond core tokens.

Why Inflows Signal Strength Despite Late Pullback

The surge reflects robust institutional demand, with Bitcoin and Ethereum exchange-traded funds (ETFs) continuing to draw capital even as policy debates linger. Altcoin breadth, including XRP and Solana, suggests rotation beyond BTC dominance, potentially fueled by utility narratives and ETF momentum.

Yet the recent reversal underscores vulnerability to macro events, including tariff risks and geopolitical jitters that sparked risk-off moves, spilling into crypto. Broader market context shows Bitcoin near $92,000 – $95,000 amid volatility, with gold and safe-havens gaining traction.

For investors, these inflows (pushing 2025 totals near $47 billion) point to underlying confidence in digital assets as adoption grows. However, external shocks could cap gains in the short term, making diversification key.

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