Bitcoin investment products recorded $1.44 billion in net outflows last week, according to CoinShares. This marked the largest weekly withdrawal from Bitcoin funds so far in 2026, surpassing both the previous week’s record and the outflow peak seen in January.
The heavy selling materially reduced Bitcoin’s year-to-date inflows, which dropped to $1.2 billion from $2.6 billion a week earlier and $3.9 billion two weeks prior.
Crypto Investment Exodus Deepens
Across the digital asset space, investment products experienced $1.67 billion in outflows over the week, extending a three-week streak of net withdrawals and taking cumulative losses over that period to $4.21 billion. In its latest Digital Asset Fund Flows Weekly Report, CoinShares said that risk-off sentiment tied to developments involving Iran appeared to outweigh any support that might have come from progress on the CLARITY Act.
Assets under management fell to $141 billion from $148 billion the previous week, reaching their lowest point since early April. That decline mirrors the pattern seen during the five-week run of outflows between January and February.
Ethereum investment products saw $257 million exit the market, while participation across the broader altcoin sector weakened. Only five assets attracted inflows above $1 million, down from nine the prior week. XRP led those inflows with $20.3 million in net additions, followed by Hyperliquid with $10.8 million and Near with $7.6 million. By contrast, multi-asset products experienced outflows of $2.3 million, while Sui and Solana recorded investor withdrawals of $1.4 million and $0.8 million, respectively.
Regionally, the United States accounted for the bulk of last week’s withdrawals, with investors pulling $1.63 billion from digital asset investment products. Germany registered $25.7 million in net withdrawals, largely avoiding the heavier selling seen in previous weeks. Sweden and Hong Kong followed with investor pullbacks of $6.6 million and $4.5 million, respectively.
Conversely, the Netherlands, Switzerland, and Canada saw modest inflows, receiving $1.3 million, $0.5 million, and $0.4 million respectively.
Pressure Beyond Risk Appetite
The latest fund flow data arrives as Bitcoin faces renewed bearish pressure and fragile investor sentiment. Some analysts expect the crypto asset may experience further downside in the near term.
Analysts at Bitunix argue that Bitcoin’s challenges extend beyond a simple shift in risk appetite. Instead, the asset is increasingly being tested by the broader effects of rising global funding costs and tightening liquidity conditions. If U.S. nonfarm payrolls print stronger than expected and Treasury yields push toward 5%, valuations across risk assets could be re-evaluated. Conversely, softer labor data might reduce fears of additional monetary tightening.
“At this stage, the key driver of market sentiment is no longer whether the Federal Reserve will raise rates again, but whether the bond market has already delivered the economic effects of another rate hike before policymakers act.”