Crypto funds see $1.07B outflow as Iran risk hits Bitcoin ETFs

Crypto investment products posted $1.07 billion in net outflows last week, ending a six-week inflow run and lowering total assets under management in digital asset funds to $156.9 billion from $159 billion the prior week.

The outflows were concentrated in U.S.-listed Bitcoin products, which accounted for about $981.5 million of the weekly redemptions. Spot Bitcoin exchange-traded funds recorded roughly $1 billion in outflows for the week. Bitcoin briefly fell below $77,000 early in the week.

Major asset managers led the withdrawals. BlackRock's products saw $487 million in outflows, Ark Invest recorded $323 million and Fidelity had $305 million in redemptions. Several managers recorded inflows: Bitwise received $25 million, 21Shares $23 million and CoinShares $6 million.

Ethereum investment products experienced $249.3 million in exits, the largest single-week outflow for those funds since late January. Blockchain equity ETFs lost $133 million in aggregate.

Some altcoin funds attracted capital. XRP products drew $67.6 million, Solana funds $55.1 million, Toncoin $7.7 million, Sui $4.7 million, Ondo $4.1 million, Chainlink $3.9 million and Dogecoin $3.2 million.

Geography shaped the flows. U.S.-listed funds accounted for about $1.14 billion of the weekly outflow. European markets recorded inflows, with Switzerland taking in $22.8 million, Germany $22 million and the Netherlands $7.5 million.

CoinShares head of research James Butterfill wrote, “Clarity Act momentum cushioned broader damage at the margin, with 11 assets still recording meaningful inflows of more than $1 million.”

The outflow was the third-largest weekly redemption of 2026 and reversed a prior week's $858 million in net inflows. Year-to-date net flows into digital asset products remain positive at $4.9 billion, with Bitcoin products showing $3.9 billion in net inflows and about $126.6 billion in assets under management.

Market participants cited renewed Iran-related geopolitical risk and related inflation concerns as reasons for reducing exposure to headline crypto products. Some investors reallocated into targeted altcoin funds and European-listed products during the week.