Investors withdrew $1.67 billion from digital asset investment products last week, marking the second-largest weekly outflow of 2026. Bitcoin funds faced their highest weekly outflow of the year, as noted in a recent report from CoinShares.
By Helene Braun, AI Boost|Edited by Nikhilesh De Jun 1, 2026, 5:59 p.m. 2 min readMake preferred on
(Getty Images)Key Insights:
- Last week, crypto investment products faced $1.67 billion in outflows, the second-largest withdrawal this year, contributing to a total of $4.21 billion in redemptions over three weeks.
- This trend was largely driven by U.S. investors amidst escalating geopolitical tensions involving Iran and Israel, resulting in a drop in assets under management to approximately $141 billion, the lowest since early April.
- Bitcoin funds were significantly impacted, experiencing a record outflow of $1.44 billion, while Ethereum products also faced substantial redemptions. In contrast, a few altcoins, particularly XRP, saw notable inflows.
According to CoinShares, crypto investment products recorded their second-highest weekly outflow of 2026 by the end of May, with investors withdrawing $1.67 billion from digital asset funds. This was attributed to rising geopolitical concerns and a general risk-averse sentiment in the markets.
The withdrawals marked the third consecutive week of negative net flows, with total redemptions over this period reaching $4.21 billion. CoinShares pointed out that worries regarding Iran overshadowed any optimism that had arisen from advancements on the CLARITY Act, a U.S. legislative initiative concerning crypto market structure.
Assets under management for digital asset investment products decreased from $148 billion to $141 billion, the lowest level since early April.
These outflows coincided with a significant drop in cryptocurrency values. Bitcoin approached $70,000 on Monday following reports that Iran had suspended negotiations with the U.S. in response to Israel's ongoing actions in Lebanon. This development was compounded by Strategy (MSTR), the largest Bitcoin holder, selling part of its holdings, which had been previously defended by its executive chairman Michal Saylor. Over the last 24 hours, Bitcoin's value fell by around 3%, exerting additional pressure on digital asset investment products.
The majority of last week's withdrawals came from the United States, which accounted for $1.63 billion. Germany, which had previously avoided significant selling, recorded outflows of $25.7 million, while Sweden and Hong Kong experienced withdrawals of $6.6 million and $4.5 million, respectively.
Bitcoin BTC$72,675.37 investment products suffered the most, losing $1.44 billion during the week. This marked the largest weekly outflow for Bitcoin in 2026, surpassing previous records and the peak during January's market downturn. Year-to-date inflows for Bitcoin have drastically decreased to $1.19 billion, down from $2.6 billion a week prior and $3.9 billion two weeks ago.
Ethereum (ETH) funds faced outflows of $257.3 million as well. Meanwhile, interest in alternative cryptocurrencies diminished significantly, with only five digital assets attracting over $1 million in inflows, a decrease from 11 assets three weeks ago. XRP (XRP) led with inflows of $20.3 million, followed by Hyperliquid (HYPE) with $10.8 million and Near with $7.6 million.
Despite this recent downturn, crypto investment products still manage approximately $142 billion in assets globally, highlighting the substantial institutional capital that remains in the sector even as market sentiment worsens.
Bitcoin NewsAI Disclaimer: Portions of this article were generated with the assistance of AI tools and reviewed by our editorial team for accuracy and compliance with our standards. For further details, see CoinDesk's full AI Policy.More For You
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