Digital asset investment products recorded $1.07 billion in outflows last week, marking the first negative week after a consecutive six-week inflow streak.
According to the latest report from CoinShares, the outflows also represented the third-largest weekly withdrawal of 2026, as escalating geopolitical uncertainty surrounding Iran weighed heavily on investor sentiment across global markets.
Despite the pullback, total assets under management (AuM) for crypto investment products remained relatively resilient at $157 billion, down slightly from $159 billion the previous week.
The report said the outflows were largely driven by rising geopolitical tensions linked to US-Iran, with Bitcoin seeing the biggest wave of investor withdrawals amid broader market uncertainty.
Geopolitical uncertainty continues
The latest fund flow data highlights how the 2026 Iran War continues to influence digital asset markets. Now in its third month, the conflict has already caused significant economic ripple effects: disrupted oil shipments through the Strait of Hormuz, heightened inflationary pressures, and a global shift toward defensive positioning.
Crypto’s initial “wall of worry” resilience, seen in rapid rebounds after early February shocks and its role in real-time price discovery when traditional markets were closed — has given way to risk-off outflows as the war’s duration and potential for escalation weigh on sentiment.
The tensions have intensified further today and the immediate trigger appears to be a President Donald Trump’s Truth Social post, where he wrote, “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!” This also impacted prices with Bitcoin, which was trading between the $80,000–$82,000 range in early May, primarily attributed to the Clarity Act’s positive developments, dropped below $77K.
BTC and ETH lead weekly outflows
Bitcoin (BTC) investment products accounted for the largest share of the withdrawals, seeing $982 million in outflows during the week. Ethereum (ETH) products followed with $249 million in outflows, marking Ethereum’s biggest weekly decline since late January.
The report also showed that blockchain equity ETFs suffered $133 million in combined outflows as investors reduced exposure to broader crypto-related equities.
However, the market downturn was not uniform across all digital assets.
XRP and Solana continue to attract investor demand
While Bitcoin and Ethereum faced heavy selling pressure, several altcoins continued attracting capital inflows.
XRP led altcoin inflows with $67.6 million, while Solana products added $55.1 million during the week. Smaller inflows were also recorded across Ton ($7.7M), Sui ($4.7M), Ondo ($4.1M), Chainlink ($3.9M), and Dogecoin ($3.2M) investment products.
According to CoinShares, the trend suggests investors are increasingly diversifying beyond Bitcoin and Ethereum in search of selective exposure to alternative crypto assets.
“Altcoins held up notably well,” the report noted, highlighting continued demand for selected digital assets despite broader market weakness.
While the short-term defensive move is evident, continued inflows into XRP, Solana, and other altcoins suggest institutional interest in crypto markets remains selective and active despite volatility. The report comes as crypto markets continue balancing regulatory developments, such as the CLARITY Act, global economic uncertainty from energy shocks, and shifting investor appetite across both traditional and digital asset sectors.
US Investors drive majority of withdrawals
Regionally, the United States accounted for nearly all of the week’s outflows, posting approximately $1,140 million in withdrawals from crypto investment products.
In contrast, European markets remained relatively stable. Switzerland recorded $22.8 million in inflows, Germany added $22 million, and the Netherlands saw $7.5 million in positive flows. Canada also posted $12.6 million in inflows during the week.
CoinShares noted that improving sentiment around the proposed CLARITY Act may have helped soften broader market weakness, with 11 different digital assets still recording inflows above $1 million.
Geopolitical uncertainty continues
The latest fund flow data highlights how macroeconomic and geopolitical developments continue influencing digital asset markets in 2026.
While rising tensions in the Middle East triggered a short-term defensive move among investors, continued inflows into XRP, Solana, and other altcoins suggest institutional interest in crypto markets remains active despite volatility.
The report comes as crypto markets continue balancing regulatory developments, global economic uncertainty, and shifting investor appetite across both traditional and digital asset sectors.
Also read: Strategy Adds 24,869 Bitcoin in Latest Weekly But — Now Holds 843,738 BTC
