Digital asset investment products recorded their second-largest weekly outflow of 2026 last week, with investors pulling $1.67 billion as geopolitical tensions and a surprise bitcoin sale by Strategy rattled markets.
The withdrawals marked the third consecutive week of net outflows, bringing total redemptions over the past three weeks to $4.21 billion, according to a CoinShares report published Monday. Assets under management across digital asset investment products fell to $141 billion from $148 billion the previous week, the lowest level since early April.
Bitcoin investment products bore the brunt of the selling, losing $1.44 billion during the week. CoinShares confirmed this 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 just a month ago.
The United States accounted for nearly all of last week’s withdrawals, with investors pulling $1.63 billion. Germany, which had largely avoided earlier bouts of selling, recorded $25.7 million in outflows. Sweden and Hong Kong posted smaller withdrawals of $6.6 million and $4.5 million, respectively.
CoinShares attributed the exodus to “concerns surrounding Iran” overwhelming any positive sentiment generated by recent progress on the CLARITY Act, the US crypto market structure bill. Reports that Iran had halted talks with the United States over Israel’s continued incursions into Lebanon sent bitcoin plunging close to the $70,000 mark.
The selloff intensified after Strategy, the largest corporate holder of bitcoin, sold 32 BTC for approximately $2.5 million to fund dividend payments on its preferred stock. The sale marked Michael Saylor’s first bitcoin disposal since 2022, triggering panic among investors who viewed Strategy as an unwavering accumulation vehicle.
Not all assets saw outflows. XRP and Hyperliquid’s HYPE token attracted inflows during the week, suggesting selective rotation by investors seeking exposure to specific narratives rather than broad-based crypto market sentiment.
The CoinShares data underscores the fragile state of crypto investment flows entering June. Bitcoin has sealed three consecutive red monthly candles in 2026, and the Fear and Greed Index has fallen to 23, indicating “extreme fear” among market participants.
**FAQ**
**How significant is $1.67 billion in outflows?**
It’s the second-largest weekly outflow of 2026 and the third consecutive week of net redemptions, totaling $4.21 billion over three weeks.
**What triggered the selloff?**
Geopolitical tensions involving Iran and Israel, combined with Strategy’s bitcoin sale, created a dual shock that drove investor sentiment to extreme fear.
**Which crypto products saw inflows despite the trend?**
XRP and Hyperliquid (HYPE) products attracted inflows, suggesting selective rotation into specific narratives.
Sources:
– CoinDesk: Crypto funds suffer second-largest outflows of 2026 while XRP and HYPE attract inflows (June 1, 2026)
– CoinShares: Digital Asset Fund Flows Weekly (June 1, 2026)
