Crypto funds withdrew $1.67 billion in a week - ForkLog: cryptocurrencies, AI, singularity, the future

# $1.67 billion withdrawn from crypto funds in a week

Experts linked the outflow to a revision of asset managers' strategies

From May 25 to 29, outflows from digital asset-based investment products totaled $1.67 billion. According to CoinShares' report, negative dynamics continue for the third consecutive week.

Weekly inflow trends in crypto funds. Source: CoinShares. The total amount of funds withdrawn over the past three weeks reached $4.21 billion. The current outflow level is the second-largest in 2026. Assets under management decreased from $148 billion to $141 billion — the lowest level since early April.

The main impact was on the first cryptocurrency: investors withdrew $1.43 billion from instruments based on it. This is the largest weekly outflow for the coin this year. The annual inflow into Bitcoin products decreased to $1.2 billion from $3.9 billion two weeks earlier.

Weekly distribution of attracted capital by assets. Source: CoinShares. Ethereum funds lost $257 million. Interest in altcoins also declined: only five assets showed inflows of more than $1 million. Among them: XRP ($20.3 million), Hyperliquid ($10.8 million), and NEAR ($7.6 million).

Regionally, the USA led the outflows with $1.63 billion. Sales were also recorded in Germany ($25.7 million), Sweden ($6.6 million), and Hong Kong ($4.5 million).

Weekly distribution of attracted capital by regions. Source: CoinShares.## Strategy Shift

In 2026, crypto hedge funds faced declining returns amid Bitcoin stagnation and reduced activity in the DeFi sector. Experts noted that the market has widened the gap between profitable managers and those unable to adapt to new conditions.

This year, passive holdings of main crypto assets have ceased to generate income. Only funds with diversified portfolios have succeeded. For example, Digital Asset Capital Management highlighted Hyperliquid, Morpho, and Zcash tokens as key growth drivers.

Researcher Amir Hadjian from Keyrock emphasized that the crypto industry is going through a "maturation" period. Capital is flowing into projects with real products and revenue, while weak assets are losing support. According to him, 85% of tokens launched in 2025 are trading below their opening price.

Institutional investors have become more attentive to fund structures, risk management methods, and governance mechanisms. Instead of buying altcoins, they are choosing:

• market-neutral strategies (arbitrage, DeFi yield);
• on-chain custody and custodial services;
• tokenized treasury products and RWA.

According to Crypto Insights Group, market-neutral strategies have grown by 2.15% since the beginning of the year, while targeted funds have lost 5.4%.

The industry expects a wave of consolidation. About 78% of crypto funds manage less than $50 million. Without a bullish trend, such structures will not be able to cover operational costs through fees.

Analysts predict that in a year, the number of active funds will decrease, and the average capital under management of remaining players will increase. Smaller firms will either be acquired by larger companies or leave the market due to rising competition from ETFs.

Recall that from May 18 to 22, crypto-based investment funds recorded outflows of $1.47 billion.