The latest outflows coincide with a sharp decline in crypto prices. Bitcoin fell close to the $70,000 mark on Monday after reports that Iran had halted talks with the United States in protest over Israel's continued incursions into Lebanon. The move coincided with Strategy (MSTR), the largest holder of bitcoin, selling some of its stack after years of its executive chairman Michal Saylor vowing he wouldn't do so. The largest cryptocurrency dropped about 3% over the past 24 hour period, adding pressure to digital asset investment products.
The United States accounted for nearly all of last week's withdrawals, with investors pulling $1.63 billion from crypto funds. Germany, which had largely avoided earlier bouts of selling, recorded $25.7 million in outflows. Sweden and Hong Kong posted withdrawals of $6.6 million and $4.5 million, respectively.
Bitcoin investment products saw the largest share of the selling, losing $1.44 billion during the week. According to CoinShares, that was the largest weekly bitcoin outflow of 2026, surpassing both the previous week's record and the peak reached during January's selloff. Year-to-date bitcoin inflows have fallen sharply to $1.19 billion, down from $2.6 billion a week earlier and $3.9 billion two weeks ago.
Ethereum (ETH) funds also came under pressure, recording $257.3 million in outflows. Meanwhile, investor appetite for alternative cryptocurrencies weakened considerably. CoinShares noted that only five digital assets attracted more than $1 million in inflows, down from 11 assets three weeks ago. $XRP ($XRP) led with $20.3 million in inflows, followed by Hyperliquid (HYPE) at $10.8 million and Near at $7.6 million.
Despite the recent pullback, crypto investment products still hold roughly $142 billion in assets globally, underscoring how much institutional capital remains invested in the sector even as market sentiment deteriorates.
coindesk.com
