Crypto Funds Shed More Than $1 Billion as Iran Tensions Drive Outflows

The United States launched a fresh wave of airstrikes against Iranian military targets, while Trump said US forces would intensify their attacks, rapidly raising the risk of further escalation in the Middle East. Crypto assets have long been sensitive to global liquidity and risk-off sentiment, and the selloff reflected investors shifting toward relatively safer assets such as the US dollar.

After news of the airstrikes emerged on July 19, the crypto market lost about $80 billion within 24 hours, pushing its total market capitalization to its lowest level since mid-April. Bitcoin fell below $73,000, while Ether dropped below $1,970. Iran’s Islamic Revolutionary Guard Corps later said it had launched airstrikes against US forces, further intensifying market panic.

CoinShares' weekly fund-flows report tracks digital-asset investment products worldwide, including ETFs and ETPs, and is a key gauge of institutional investors' risk appetite. As the United States advanced the CLARITY Act, rising geopolitical risks linked to Iran prompted a shift toward safe-haven assets and weighed on major cryptocurrencies including Bitcoin.

CoinShares said on May 26, 2026, that cryptocurrency investment products recorded net outflows of $1.47 billion in the preceding week, marking a second consecutive week of withdrawals. Bitcoin products lost about $1.3 billion, while Ether products shed $223 million. Bucking the trend, XRP and Solana attracted $31.8 million and $7.7 million, respectively, while nine assets recorded inflows exceeding $1 million.