Crypto funds see $1.67B outflows, XRP and HYPE buck trend

Crypto investment products recorded their second-largest weekly outflow of 2026, with investors pulling $1.67 billion from digital asset funds as geopolitical tensions and a broader risk-off mood weighed on markets.

The withdrawals marked the third consecutive week of net outflows, bringing total redemptions over the past three weeks to $4.21 billion. CoinShares attributed the selling pressure to concerns surrounding Iran, which overwhelmed any positive sentiment generated by recent progress on the CLARITY Act, a U.S. crypto market structure bill. Assets under management across digital asset investment products fell to $141 billion from $148 billion the previous week.

For cryptocurrency traders, the persistent outflows signal a cautious institutional stance, often correlating with broader risk-asset weakness. Traders can monitor these capital flows in real time on NowPrice's live crypto dashboard to gauge market sentiment shifts. The divergence between broad outflows and inflows into XRP and HYPE funds suggests selective interest in specific tokens, possibly driven by regulatory developments or network-specific catalysts.

Looking ahead, traders will watch for any escalation in geopolitical tensions or further progress on the CLARITY Act, which could reverse the risk-off trend. Additionally, the upcoming Federal Reserve meeting and U.S. inflation data may influence capital flows into digital assets. Sustained outflows could pressure prices, while a reversal might signal renewed institutional confidence.