US-Based Funds Drive $1.7B In Crypto ETP Outflows In…

US-based investment vehicles pulled US$1.63 billion from digital asset products last week, lifting global crypto ETP outflows to US$1.67 billion in the second-largest weekly redemption of 2026, CoinShares reported on June 1. Exchange-traded products (ETPs) are listed vehicles that track crypto prices on traditional exchanges, and they include the spot Bitcoin and Ether exchange-traded funds (ETFs) that dominate US trading. The withdrawals extended a three-week selloff that has now drained US$4.21 billion from the sector, according to CoinShares’ latest Digital Asset Fund Flows report, even after crypto ETFs briefly turned positive on May 28 with more than US$428 million in additions. Assets under management fell to US$141 billion from US$148 billion, the lowest level since early April, as worsening risk aversion linked to escalating geopolitical tension around Iran pushed investors out of crypto products.

Bitcoin Posts Largest 2026 Outflow

Bitcoin accounted for most of the week’s redemptions, shedding US$1.438 billion in net outflows and recording its heaviest weekly exit of the year. That reduced Bitcoin’s year-to-date net inflows to US$1.2 billion from US$2.6 billion a week earlier. The latest exit built on a US$1.26 billion outflow across five trading days in the week ending May 18, when Bitcoin posted a US$630 million single-day redemption on May 13. Source: CoinShare Ethereum followed with US$257 million in net outflows as the risk-off mood spread beyond the largest asset, a turn from earlier in the year when Wells Fargo raised its spot Ether ETF holdings in the first quarter and trimmed parts of its Bitcoin exposure. Regional data showed the pressure concentrated in the United States, which accounted for US$1.63 billion of the global total. Germany registered US$25.7 million in outflows, while Sweden and Hong Kong saw smaller net withdrawals of US$6.6 million and US$4.5 million.

One of the leading contributors to the outflows across ETPs is selling by institutional investors who hold these ETFs. The Friday, May 29 session offers a clear example, with asset manager BlackRock’s IBIT leading the selloff and shedding US$68.2 million, according to SoSoValue. Fidelity’s FBTC followed with US$31.95 million in outflows.

Source: SosoValue

Grayscale lost US$9.74 million from its Bitcoin Mini Trust and US$2.85 million from the larger GBTC, while the Ark and 21Shares ARKB fund gave up US$7.3 million. IBIT remained the largest of the funds despite the outflow, holding US$58.05 billion in net assets against US$13.37 billion at FBTC and US$10.74 billion at GBTC.

Altcoin Inflows Narrow Sharply

Investor appetite for smaller tokens thinned across the three-week stretch. Eleven assets attracted net inflows three weeks ago, yet only five drew more than US$1 million last week. XRP recorded the largest of those inflows at US$20.3 million, ahead of Hyperliquid at US$10.8 million and NEAR at US$7.6 million.

Those inflows have not translated evenly into price, with only Hyperliquid’s HYPE posting a meaningful gain—up 13.3% over the past week and trading into a new all-time high. NEAR and XRP moved the other way, slipping 0.11% and 4.92% over the same period.CoinShares tied the broad exodus to heightened geopolitical tension, which reinforced risk-off sentiment and drove redemptions across most regions.