Crypto Funds Shed $1.07 Billion in Weekly Outflows, Ending Six-Week Win Streak
Cryptocurrency investment products recorded $1.07 billion in net outflows in the week ending May 18, snapping a six-week run of consecutive inflows. The sell-off was driven almost entirely by U.S.-based funds.
Bitcoin and Ethereum products bore the brunt of the exodus as Iran-related geopolitical tensions shook broader risk appetite.
What Happened
Bitcoin (BTC) and Ethereum (ETH) funds led the reversal, according to a Decrypt report published May 18. U.S. products accounted for the overwhelming share of the outflows.
The weekly figure marks the largest single-week reversal since the current institutional accumulation cycle began gaining pace in late 2025. Bitcoin fell toward $76,000 on Monday as the outflow data circulated, erasing all its gains for the month of May.
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The Geopolitical Trigger
President Donald Trump issued a fresh warning to Iran over stalled peace negotiations, fanning fears of renewed conflict in the Middle East.
Oil prices rose sharply in response, and broad risk assets sold off. Cryptocurrency markets, which had benefited from a six-week stretch of institutional inflows, reversed course as traders reduced exposure to high-volatility assets.
The shift was concentrated in American funds, with non-U.S. products showing comparatively modest outflows.
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Background
The six consecutive weeks of net inflows into cryptocurrency investment products had reflected growing institutional appetite, particularly through spot Bitcoin and Ethereum ETFs approved by U.S. regulators. Spot Bitcoin ETFs, which hold actual Bitcoin and allow traditional investors to gain exposure without holding the asset directly, crossed cumulative net inflows of tens of billions of dollars across their first full year of trading.
The prior streak had been one of the longest uninterrupted inflow runs since the ETF products launched. Outflows of this scale are not unprecedented.
A comparable reversal occurred in January 2025 when macro uncertainty triggered a brief institutional pullback before inflows resumed.
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What to Watch
Whether the outflow is a single-week correction or the start of a sustained reversal depends on how the Iran situation develops. If diplomatic talks resume and risk appetite returns, institutional buyers who drove the prior six-week streak may return quickly.
If geopolitical pressure persists, further outflows are possible in the week ahead. Bitcoin’s ability to hold above $76,000 is the immediate technical watch point.
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