Digital asset investment products saw another large outflow last week, with net outflows reaching $1.47 billion for the week. This marks the second consecutive week of outflows, contributing to a weak overall performance for May. In terms of weekly scale, this is the third-largest capital withdrawal since 2026.
Bitcoin and Ethereum lead in outflows
Looking at asset distribution, Bitcoin remains the primary source of outflows this round, with approximately $1.315 billion flowing out in a single week, causing the year-to-date net inflow to decline from $3.9 billion to $2.6 billion. Ethereum saw outflows of $222.8 million during the same period, nearing the prior week’s outflow of approximately $249 million.
However, some assets still experienced net inflows. XRP saw $31.8 million in inflows, the highest among major assets; Bitcoin-related products recorded an additional $10.2 million in inflows, and Solana saw $7.7 million in inflows. The report noted that nine assets still had weekly inflows exceeding $1 million.
Multiple markets are experiencing simultaneous pressure.
Regional data also shows that capital outflows are not limited to a single market. Germany saw nearly flat activity, with outflows of $16.2 million from Switzerland, $12.5 million from Canada, and $12.2 million from Hong Kong. Overall, North America and several offshore markets exhibited weaker capital flows.
Geopolitical tensions and legislative prospects are weighing on sentiment.
The market has linked this round of outflows to two factors. One is the recurring tensions in the Middle East. Although U.S. President Trump announced a peace agreement with Iran, briefly easing market sentiment, this effect did not last, and risk appetite subsequently declined again.
Second, the outlook for U.S. cryptocurrency regulatory legislation remains uncertain. The report notes that momentum for the CLARITY Act has noticeably slowed over the past week, with its approval probability dropping to 50%. Amid ongoing regulatory ambiguity, some institutional funds have chosen to reduce their exposure, weighing on overall subscription performance for digital asset investment products.