Crypto Funds See $1.07B Outflows as Bitcoin Leads Sell-Off
Digital asset investment products saw a sharp reversal last week, with $1.07 billion in outflows marking the third-largest weekly withdrawal of 2026, according to CoinShares' latest report. The sell-off ended a six-week streak of positive flows and highlighted renewed risk aversion, particularly in Bitcoin and Ethereum-focused products.
Bitcoin accounted for the lion’s share of the outflows, shedding $982 million, while Ethereum followed with $249 million in redemptions—its largest weekly outflow since late January. Blockchain equity ETFs also felt the pressure, losing $133 million. Total assets under management (AuM) across digital asset funds slipped to $157 billion from $159 billion the prior week.
The macro backdrop played a significant role. CoinShares attributed the sell-off to geopolitical risk tied to Iran-related events, which triggered a broader risk-off sentiment. This mirrors earlier episodes of institutional pullbacks, such as the $1.7 billion in crypto fund outflows reported in February 2026, when weak investor sentiment and U.S.-listed ETF redemptions dominated headlines.
Still, it wasn’t all bad news. Altcoins like XRP and Solana bucked the trend, recording inflows of $67.6 million and $55.1 million, respectively. Smaller assets such as Toncoin ($7.7 million), Sui ($4.7 million), and Chainlink ($3.9 million) also saw modest gains, suggesting selective investor interest beyond Bitcoin and Ethereum. Notably, these inflows coincided with progress on the CLARITY Act, a regulatory initiative aimed at providing clearer guidelines for digital assets, which appeared to stabilize sentiment mid-week.
Geographically, the sell-off was concentrated in the U.S., which saw $1.14 billion in outflows. Europe, by contrast, showed resilience, with Switzerland, Germany, and the Netherlands collectively attracting over $50 million in inflows. Canada also posted $12.6 million in net inflows.
The broader context reveals a market still grappling with volatility and shifting institutional priorities. Bitcoin, which trades at $77,274 as of May 18, 2026, has been particularly vulnerable to these dynamics. Year-to-date, the leading cryptocurrency has seen $3.9 billion in fund outflows, reflecting ongoing risk management by large allocators amid a challenging macro environment.
For traders, these dynamics underscore the importance of monitoring institutional flows, which often serve as a bellwether for broader market sentiment. While Bitcoin and Ethereum remain cornerstone assets, the continued resilience in altcoins like XRP and Solana could indicate a gradual diversification of demand within the digital asset space.