Largest capital outflow since 2026! Bitcoin spot ETF saw weekly outflows of $1.26 billion, as the ongoing US-Iran conflict continues to impact markets

Global crypto products face panic withdrawals, with a net outflow of $1.47 billion in a single week. Due to the Middle East conflict, Bitcoin has suffered significant outflows, while some competing coins have attracted funds against the trend.

According to the latest report from CoinShares, last week, global cryptocurrency investment products experienced panic redemptions, with a weekly net outflow of up to $1.47 billion. This not only marks the second consecutive week of net capital outflows but also the third-highest weekly loss since 2026.

CoinShares Research Director James Butterfill pointed out in the report that this two-week-long continuous large-scale withdrawal has resulted in a total redemption amount of $2.54 billion across the entire crypto market. He stated that although progress continues on the U.S. Digital Asset Market Clarity Act, the risk-averse sentiment triggered by the geopolitical conflict in the Middle East is intensifying. This wave of panic withdrawals has almost spread to markets worldwide.

Looking back at the previous week, the crypto market had just ended a six-week streak of capital inflows, turning into a net outflow of $1.07 billion. Currently, the total assets under management (AUM) for global crypto products are approximately $148.7 billion, meaning last week’s outflows accounted for about 1% of the total scale.

Image source: CoinShares

In this sell-off wave, Bitcoin (BTC) is undoubtedly the biggest victim. Just related Bitcoin fund products saw withdrawals of $1.32 billion last week, surpassing the peak outflows in late January this year and setting a new record for the largest weekly redemption since 2026. James Butterfill pointed out that this caused Bitcoin’s net capital inflow for the year to sharply shrink from $3.9 billion to $2.6 billion within just one week.

During the same period, US spot Bitcoin ETFs alone recorded net outflows of $1.26 billion, also marking the bleakest week since late January.

However, the crypto market is not entirely pessimistic. Some funds are quietly shifting into “competitive coins.” Among them, Ripple (XRP) related funds attracted $31.8 million in inflows against the trend; recently, NEAR Protocol (NEAR) products also received a net inflow of $9 million, which is particularly impressive given NEAR’s asset management scale of only $74 million.

Additionally, Solana (SOL) ETP saw an inflow of $7.7 million, while Sui (SUI) and multi-asset products received net inflows of $2.9 million and $4.7 million, respectively.

As for the “short Bitcoin products” used for inverse shorting of Bitcoin, they attracted $10.2 million last week, indicating some investors are actively positioning for hedging or bearish bets.

From a regional perspective, this wave of sell-offs mainly concentrated in the United States, with capital outflows reaching $1.43 billion. The previously resilient European market experienced a reversal, with Swiss funds recording outflows of $16.2 million; Canada and Hong Kong also saw outflows of $12.5 million and $12.2 million, respectively. According to CoinShares data, only the German market’s capital flows remained roughly stable and unaffected.

• This article is reprinted with permission from: “BlockBeats”
• Original title: “Global Crypto ETP Weekly Outflows Reach $1.47 Billion, Bitcoin Funds Face Worst Sell-off Since 2026”
• Original author: Block Sister MEL