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Crypto funds recorded their second-largest weekly outflow of 2026 as investors pulled money from digital asset investment products. CoinShares reported $1.67 billion in withdrawals last week, extending a three-week run of redemptions to $4.21 billion.
Bitcoin funds led the selloff, while Ethereum products also posted large withdrawals. However, XRP, Hyperliquid, and Near still attracted inflows, showing that some investors continued to place selective bets across altcoins.
Digital asset investment products saw $1.67 billion in outflows last week, according to CoinShares. The figure marked the second-largest weekly withdrawal of 2026 and extended the market’s losing streak to three straight weeks.
Total redemptions over the three weeks reached $4.21 billion. CoinShares said concerns around Iran outweighed recent optimism linked to progress on the CLARITY Act, a US crypto market structure bill.
Assets under management across crypto investment products fell to about $141 billion from $148 billion a week earlier. This marked the lowest level since early April. The decline came as crypto prices weakened and investors reduced exposure to risk assets.
The United States accounted for most of the latest selling. Investors pulled $1.63 billion from US-based crypto funds. Germany also recorded $25.7 million in outflows, while Sweden and Hong Kong posted withdrawals of $6.6 million and $4.5 million, respectively.
Bitcoin investment products recorded $1.44 billion in outflows during the week. CoinShares said this was the largest weekly Bitcoin fund outflow of 2026, exceeding the previous week’s record and the January selloff peak.
Year-to-date Bitcoin fund inflows fell to $1.19 billion. That compared with $2.6 billion a week earlier and $3.9 billion two weeks earlier. The drop showed how fast recent selling has reduced earlier gains in fund flows.
Meanwhile, Bitcoin fell to its lowest level in almost two months on Tuesday. TradingView data showed BTC dropped below $70,000, its lowest point since April 7. The asset declined more than 4% on the day and 8% over the week.
The selloff widened the gap between crypto and equities. Santiment said, “the gap between traditional equities and crypto has become increasingly difficult for traders to ignore.” US stock indexes moved near record highs while Bitcoin remained under pressure.
Andri Fauzan Adziima, research lead at Bitrue Research Institute, said some analysts now view Bitcoin as the only major asset in contraction. He added, “It shows Bitcoin is trading more like a high-beta risk asset tied to macro sentiment rather than an independent hedge.”
Ethereum funds also faced selling pressure, with $257.3 million in weekly outflows. The withdrawals added to the broader decline across major crypto investment products as investors remained cautious.
Although a few altcoins still attracted fresh capital. CoinShares noted that only five digital assets drew more than $1 million in inflows, down from 11 assets three weeks earlier. XRP led the group with $20.3 million in inflows.
Hyperliquid followed with $10.8 million in inflows, while Near attracted $7.6 million. The figures showed that some investors continued to move funds into selected assets even as broader crypto products faced redemptions.
Santiment also noted that the growing preference for stocks over crypto can create a self-reinforcing cycle. The platform said investors often rotate capital away from crypto when equities deliver stronger returns with lower volatility.
Santiment, on the other hand, said that such gaps do not last forever. It stated that public focus on stock strength over the crypto market may show that market sentiment has leaned too far toward equity FOMO and crypto FUD.
Bitcoin is now near a key long-term technical zone. The 200-week exponential moving average sits around $69,000, according to market data. Traders are watching that level as BTC remains under pressure after its slide toward $70,000.
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