Digital asset investment products bled over $1 billion last week, snapping a six-week run of inflows and posting the third-largest weekly outflow of 2026, according to CoinShares data. Bitcoin products accounted for $982 million of the withdrawals, Ethereum for $249 million, pushing total crypto ETP assets under management down to $157 billion from $159 billion. The reversal, CoinShares said, was triggered by Iran-related risk-off sentiment that ended a positive streak stretching back to early April.
Why Iran rattled the market
Geopolitical jitters around the Strait of Hormuz sent Brent crude above $110 a barrel, and the 10-year Treasury yield climbed to 4.687% before settling near 4.65%. The 30-year hit 5.131%. Those moves stoked expectations that the Fed might hike again — December pricing now shows a near-40% chance of a 25-basis-point increase and a 14% chance of a 50-basis-point move. Bitfinex flagged that Bitcoin is now facing weakening ETF demand alongside higher oil prices and a higher-for-longer rate environment. The macro mood turned decisively risk-off, and crypto felt it.
Bitcoin under pressure
Bitcoin closed the week 4.6% lower, and US spot Bitcoin ETFs saw net outflows approaching $1 billion — the most since outflows peaked earlier this year. Glassnode pegs immediate support around $76,900 on a 30-day cost basis, with resistance near $86,900. By May 19, Bitcoin was trading near $77,000. That's uncomfortably close to support, and funding rates for both Bitcoin and Ethereum stayed negative through the sell-off, suggesting leveraged longs aren't piling back in yet.
Altcoins buck the trend — mostly
Not everything bled. XRP took in $67.6 million globally, Solana $55.1 million. Selected altcoin perpetual funding rates even turned positive during the sell-off, a contrast to the flagship assets. The divergence suggests some traders are rotating into alternative names, or are simply less scared of altcoins' lower correlation to macro shocks. Switzerland, Germany, the Netherlands, and Canada all recorded net inflows when US data is excluded — meaning the outflow pain was almost entirely American. US investors alone withdrew $1.14 billion, more than the global net total.
What comes next
Can-Luca Köymen of CoinShares noted that part of the outflows was simple profit-taking after six straight weeks of gains, and that progress on the CLARITY Act — a US bill that would clarify crypto tax treatment — cushioned the broader tone. Still, the rate-hike risk hasn't gone away, and oil above $110 isn't a backdrop that typically favors risk assets. The next weekly flows report will show whether the outflows accelerate or stabilize as traders adjust to the new macro reality.
