Crypto funds bleed $1.67B in second-worst outflow week of…

Digital asset investment products shed $1.67 billion last week in the second-largest weekly outflow of 2026, according to CoinShares — bringing total redemptions over the past three weeks to $4.21 billion. Bitcoin funds bore the sharpest pain, posting a record $1.44 billion weekly outflow and dragging assets under management across the sector down to $141 billion, the lowest level since early April.

The selloff was overwhelmingly U.S.-driven: American investors pulled $1.63 billion from crypto funds alone, with Germany, Sweden, and Hong Kong adding modest but notable withdrawals. CoinShares attributed the move to rising geopolitical tensions around Iran and Israel, which it said drowned out any positive momentum from recent progress on the CLARITY Act. Bitcoin fell close to the $70,000 mark as Iran halted U.S. talks in protest over Israeli incursions into Lebanon, and the pressure was compounded by Strategy — the largest corporate BTC holder — selling a portion of its stack for only the second time in its history.

Ethereum products saw $257.3 million in outflows. The few bright spots were narrow: XRP led altcoin inflows at $20.3 million, Hyperliquid (HYPE) attracted $10.8 million, and Near pulled in $7.6 million. CoinShares noted that only five assets drew more than $1 million in fresh money, down from 11 just three weeks ago — a sharp contraction in risk appetite across the board.