This week in crypto, global markets reacted to new tariff measures announced by U.S. President Donald Trump, leading to a volatile trading environment. In the crypto sector, Bitcoin ETFs experienced significant outflows, yet optimism remained high with a wave of new altcoin ETF filings. Regulatory progress in Hong Kong and the United States added further momentum, while Web3 platforms faced renewed cybersecurity challenges. Overall, the market continues to balance short-term caution with longer-term institutional growth.

President Trump’s decision to implement a 90-day pause on “reciprocal tariffs,” combined with a reduction in tariff rates to 10% for countries that do not retaliate, added to market uncertainty this week. Financial markets, including the cryptocurrency sector, once again reacted sharply to changes in U.S. policy. The announcement prompted investors across traditional and digital asset markets to reassess their risk exposure, highlighting the growing sensitivity of market sentiment to geopolitical and economic developments.

In macro and institutional developments, spot Bitcoin ETFs recorded significant outflows this week, reflecting a broader shift in investor sentiment. Rising concern over macroeconomic uncertainty, particularly around the potential for inflationary pressures following recent U.S. tariff adjustments, saw many investors pull back from risk assets. The outflows highlight the market’s sensitivity to policy changes and the fragile balance between economic growth and inflation control. While Bitcoin remains a core holding for many institutional portfolios, the current environment has prompted a more cautious approach as investors await clearer signals on the global economic outlook.

Despite the pullback in Bitcoin ETFs, institutional interest in crypto more broadly remains strong. Nasdaq filed an application to list a VanEck spot Avalanche ETF, broadening exposure options beyond Bitcoin and Ethereum. 21Shares applied to launch a spot Dogecoin ETF in the U.S., following a growing trend of memecoin-focused investment products. Cboe BZX submitted plans to list a spot SUI ETF from Canary. Meanwhile, Teucrium is set to launch the country’s first leveraged XRP-based ETF on NYSE Arca, and Grayscale filed a new S-1 registration to list its Solana ETF on the NYSE. The flurry of new filings suggests that institutions are continuing to invest in building the next generation of crypto investment products, even as broader markets remain cautious.

Regulatory developments were also in focus. Hong Kong introduced new crypto staking regulations as part of its broader strategy to support Web3 development. HashKey became the first company to gain approval to offer staking services under the new framework, reinforcing Hong Kong’s ambition to become a leading crypto hub. In the United States, Paul Atkins was confirmed by the Senate as the new Chair of the Securities and Exchange Commission (SEC). With a long career in financial regulation, Atkins has indicated plans to bring greater clarity to crypto rules — a potential step forward for the industry, which has long sought more predictable regulation.

In the Web3 and decentralised applications space, cybersecurity remained a concern. Users of Atomic and Exodus wallets were targeted in a new exploit, highlighting ongoing risks even among well-established platforms. The incident prompted immediate security updates and fresh warnings for users to review their safety practices.

Looking ahead, the crypto market remains in a state of cautious optimism. While macroeconomic concerns continue to drive short-term uncertainty, the steady rise in institutional products and clearer regulatory paths in key jurisdictions suggest a strong foundation for the industry’s next phase of growth.

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