Investors withdrew $1.14 billion from US crypto funds last week as geopolitical tensions drove a broader retreat in risk assets.
Crypto investment funds saw net outflows of $1.14 billion, primarily driven by US investors amid rising geopolitical risks. The pullback followed heightened tensions around the Strait of Hormuz, a key oil transit route, which lifted energy prices and stoked inflation concerns.
Despite the outflows, Bitcoin and Ether exchange-traded products (ETPs) remain positive year-to-date. European markets, including Switzerland and Germany, reported modest inflows, contrasting with the US-led retreat.
The sell-off coincided with a decline in the S&P 500 from record highs, as investors reassessed risk amid inflation pressures. Regulatory progress on the US CLARITY Act, aimed at clarifying digital asset rules, provided some support for select altcoins.