Iran tensions drive $1.07B outflows; Bitcoin, Ether ETFs drop
Iran tensions triggered $1.07B in crypto fund outflows, ending a six-week inflow streak as U.S.-listed Bitcoin ETFs lost $982M and Ether ETFs $249M.
CoinShares reported Monday that tensions involving Iran prompted $1.07 billion in outflows from crypto investment products last week, ending a six-week inflow run and marking the third-largest weekly withdrawal of 2026. Total assets under management fell to $157 billion from $159 billion the prior week.
The outflows were concentrated in U.S.-listed products, which accounted for $1.14 billion of redemptions. European and Canadian funds recorded modest net inflows: Switzerland attracted $22.8 million, Germany $22.0 million, the Netherlands $7.5 million and Canada $12.6 million.
Bitcoin-focused products registered $982 million in outflows for the week, reducing Bitcoin’s year-to-date inflows to $3.9 billion. Ethereum funds posted $249 million in outflows, the weakest weekly result since late January. Eleven individual assets finished the week with positive flows.
Smaller tokens drew fresh cash: XRP received $67.6 million and Solana $55.1 million. Toncoin, Sui, Ondo, Chainlink and Dogecoin also recorded inflows.
Analysts attributed the reversal mainly to renewed geopolitical anxiety tied to Iran, which unsettled broader risk markets. A related sell-off in U.S. Treasuries pushed the 10-year yield to about 4.63% on Sunday night, its highest level since February 2025 and roughly 70 basis points higher since tensions escalated. The rise in yields coincided with more than $670 million in liquidations across crypto markets and Bitcoin slipping below $77,000 to a three-week low.
Legislative developments provided partial support. The U.S. CLARITY Act passed the Senate Banking Committee on Thursday, and flows that day were positive at $174 million. CoinShares noted that investor interest in select assets and the committee vote signaled persistent demand despite the week’s outflows.
The report highlighted a rotation toward smaller-cap tokens as some investors trimmed holdings in the largest crypto funds and reallocated to selective positions lower in the market.
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