Digital asset investment products posted $1.67 billion in net weekly outflows by the end of May, marking the second-largest weekly withdrawal of 2026. CoinShares said this was the third straight week of net redemptions, bringing the total outflow over the past three weeks to $4.21 billion. Geopolitical tension and a broad risk-off shift in markets outweighed optimism tied to progress on the U.S. market structure bill known as the CLARITY Act.
Assets under management also moved lower. Total AUM across digital asset investment products fell from $148 billion a week earlier to $141 billion, the lowest level since early April. CoinShares said concerns linked to Iran had become the dominant drag on sentiment.
U.S. investors drove nearly all of the weekly redemptions
The United States accounted for almost all of last week’s withdrawals, with crypto funds in the country losing $1.63 billion. Germany, which had largely avoided the earlier selling waves, recorded $25.7 million in outflows. Sweden and Hong Kong followed with withdrawals of $6.6 million and $4.5 million.
The fund outflows came alongside a drop in crypto prices. Bitcoin fell close to the $70,000 level on Monday after reports said Iran had halted talks with the United States in protest over Israel’s continued incursions into Lebanon. At the same time, Strategy (MSTR), the largest holder of bitcoin, sold part of its holdings despite years of statements from executive chairman Michal Saylor that he would not do so. Bitcoin was down about 3% over the past 24 hours, adding pressure to fund products.
Bitcoin records its biggest weekly outflow of the year
Bitcoin investment products absorbed the largest share of the selling, with $1.44 billion in weekly outflows. CoinShares said that was the biggest weekly bitcoin outflow of 2026, exceeding both the previous week’s record and the peak reached during January’s selloff. Year-to-date bitcoin inflows have now dropped to $1.19 billion, down from $2.6 billion a week earlier and $3.9 billion two weeks earlier.
Ethereum funds also faced pressure, logging $257.3 million in outflows. Demand for alternative tokens weakened sharply as well. CoinShares noted that only five digital assets attracted more than $1 million in inflows, down from 11 three weeks earlier. XRP led with $20.3 million in inflows, followed by Hyperliquid (HYPE) at $10.8 million and Near at $7.6 million.
Even after the recent pullback, crypto investment products still hold roughly $142 billion in assets worldwide, showing that institutional capital remains heavily exposed to the sector despite the weaker market mood.