$1.3B leaves Bitcoin: 2 reasons why digital asset investments fell this week
What does the most recent $1.47 billion outflow indicate about the risk appetite of investors?
The digital asset investment product had a rough last week, with $1.47 billion in outflows. This was the second such week of outflows, which suggests that May was largely negative.
The outflow data for this week also marked the third-largest weekly outflows of 2026, last observed in late January, wherein outflows had reached $1.7 billion.
According to CoinShares’ weekly report, the United States was the country that saw the largest outflow, totaling $1.425 billion.
In contrast, Germany remained essentially flat, while Switzerland saw outflows of $16.2 million. Following the trail, Canada recorded $12.5 million in outflows, whereas $12.2 million left Hong Kong.
Flow analysis by assets
Even with this bad run, nine assets continued to report inflows exceeding $1 million.
With an inflow of $31.8 million, Ripple [XRP] saw the largest inflow, followed by Bitcoin [BTC] with $10.2 million and Solana [SOL] with $7.7 million. For others, however, inflows were modest but significant.
On the other hand, Bitcoin outflows totaled $1,315 million, resulting in its flow for the year decreasing from $3.9 billion to $2.6 billion.
Following Bitcoin’s lead, Ethereum [ETH] also saw $222.8 million in outflows. This was very similar to what ETH saw last week, when its outflow streamed $249 million.
What caused this massive outflow?
According to CoinShares, this occurred because the risk associated with Iran has increased.
Indeed, the market was temporarily calmed by US President Donald Trump’s announcement of a peace agreement with Iran, but this was only short-lived.
Lastly, the ambiguity surrounding the CLARITY Act also contributed to the negative flows observed in the investment products. As previously reported by AMBCrypto, the CLARITY Act approval odds also dropped to 50% in just a week.
Henceforth, demanding the approval for the same, Senator Cynthia Lummis asserted,
The digital asset industry operating in America without a real rulebook isn’t a free market, it’s a liability. America needs the Clarity Act now to ensure America writes the rules.
Final Summary
- The last week saw billions leaving the market, marking the third largest week of outflows since late January.
- CLARITY Act uncertainty and risk associated with Iran were the major factors behind these massive outflows.
