Over $1.47 billion leaves crypto as Iran's IRGC threatens
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Crypto investment products from firms including BlackRock, Fidelity Investments, and 21Shares recorded around $1.47 billion in outflows last week, marking the second straight week of withdrawals, according to a Tuesday, May 26 report from CoinShares.
The latest pullback became the third-largest weekly outflow recorded in 2026. Over the past two weeks, cumulative redemptions have now reached $2.54 billion.
In the report, James Butterfill said growing risk-off sentiment linked to Iran-related tensions spread across “virtually every region,” even as progress continued around the Clarity Act.
The previous week had already broken a six-week inflow streak after investors pulled $1.07 billion from crypto products.
CoinShares said total assets under management across tracked funds stood at $148.7 billion, with last week’s withdrawals accounting for about 1% of total AUM.
This comes as the US hit Iranian missile sites and boats near the Strait of Hormuz overnight, and Iran's Revolutionary Guard is threatening to retaliate, calling it a ceasefire violation. A deal is close but stuck on wording around Iran's nuclear stockpile and when $24 billion in frozen assets gets released. Israel is escalating separately, striking over 100 Hezbollah targets in Lebanon overnight and pushing ground operations further north past its security zone.
Related: Goldman Sachs dumps Solana, XRP for surprising new investment
U.S. Bitcoin ETFs lead outflows
U.S. spot Bitcoin ETFs saw around $1.26 billion in cumulative net outflows during the week, according to SoSoValue data.
The decline marked the largest weekly withdrawal since late January and extended a six-day outflow streak totaling $1.55 billion.
On Monday alone, the 12 U.S.-based spot bitcoin ETFs lost a combined $648.6 million after bitcoin fell below $77,000 following President Trump’s latest Iran threat. The single-day withdrawal was the largest since Jan. 29.
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XRP and smaller altcoins still attract inflows
Ethereum products posted $222.8 million in outflows, nearly matching the previous week’s pace.
Despite broader weakness, several altcoin products continued attracting capital. XRP funds brought in $31.8 million, while Near products added $9 million despite managing only $74 million in AUM.
Solana ETPs recorded $7.7 million in inflows, Sui products gained $2.9 million, and multi-asset products attracted $4.7 million. Short Bitcoin products also logged $10.2 million in inflows.
CoinShares data showed nine assets still recorded inflows above $1 million, down from 11 assets the week before.
Regionally, the United States led withdrawals with $1.43 billion in redemptions. Switzerland posted $16.2 million in outflows, while Canada and Hong Kong saw $12.5 million and $12.2 million withdrawn, respectively. Germany remained largely unchanged.
