Exchange-traded funds (ETFs) that track the spot price of Bitcoin have experienced a significant setback this past week, marking their largest weekly outflow recorded in 2026. Over the course of the week, crypto investment products as a whole witnessed their second-highest weekly outflow of the year, with investors withdrawing a staggering $1.67 billion from digital asset funds by the end of May. This trend of withdrawals represents the third consecutive week of net outflows, resulting in total redemptions amounting to $4.21 billion during that timeframe.
Analysts attribute this wave of selling to growing concerns surrounding geopolitical events, particularly the Iran war, which seems to have overshadowed any previous positive sentiment toward digital assets. As is often the case in tumultuous market conditions, Bitcoin investment products were the hardest hit, experiencing outflows of $1.44 billion during the week. This figure not only marks the largest weekly outflow for Bitcoin in 2026 but also surpasses previous records set during both the prior week and the peak of January’s market selloff.
The recent outflows are accompanied by a noticeable decline in crypto prices. As of June 1, Bitcoin recorded a 3% drop, trading at $71,500 following reports that MicroStrategy, a prominent player in the crypto space, sold its first Bitcoin in four years. Despite the ongoing pullback, crypto investment products continue to hold substantial assets, with a total of $142 billion in global investments, according to market data.
