The cryptocurrency market has faced its largest wave of profit-taking in months. Between May 11 and May 15, 2026, institutional investors withdrew $1.07 billion from digital asset investment products. This outflow snapped a seven-week growth streak and marked the third-largest weekly decline since the beginning of this year.
According to the latest report from CoinShares, total assets under management (AUM) for crypto funds dipped from $159 billion to $157 billion. Analysts point to escalating geopolitical tensions surrounding Iran as the main trigger for the massive sell-off, prompting investors to temporarily exit high-risk assets.
Main Hit: Bitcoin and Ethereum in the Sellers’ Crosshairs
The bulk of the profit-taking was concentrated on the market’s two flagship assets. However, sentiment fluctuated throughout the week.
- Bitcoin funds lost $982 million, reducing year-to-date net inflows into premier cryptocurrency products to $3.9 billion.
- Ethereum funds recorded an outflow of $249 million — the sharpest weekly drop for the second-largest cryptocurrency since January 30.
- Blockchain equities were also hit by the wave of selling, with investors pulling $133 million from the sector.
Key takeaway: The market panic was partially countered by news out of Washington. Discussions surrounding the CLARITY Act in the US brought buyers back into the game on Thursday, driving a brief daily inflow of $174 million.
Selective Interest: Targeted Inflows Into Alts
Despite the overarching pessimism, institutional players didn’t abandon the market entirely; instead, they shifted their focus. Eleven digital assets managed to post positive flows, signaling a transition toward a more selective, cherry-picking strategy.
The leaders in capital attraction among altcoins were:
| Digital Asset | Capital Inflow ($M) |
| XRP | $67.6 |
| Solana (SOL) | $55.1 |
| Toncoin (TON) | $7.7 |
| Sui (SUI) | $4.7 |
| Ondo (ONDO) | $4.1 |
| Chainlink (LINK) | $3.9 |
| Dogecoin (DOGE) | $3.2 |
Capital Geography: US Panics, Europe Buys the Dip
Investor sentiment last week diverged sharply across regions. While the American market actively shed risk, European participants capitalized on the price drop to accumulate assets.
- United States: Acted as the primary driver of the negative trend, with outflows reaching $1.14 billion.
- Canada: Mirrored the North American pessimism, losing $12.6 million.
- Switzerland: Led European buyers with an inflow of $22.8 million.
- Germany: Recorded a steady inflow of $22 million.
- Netherlands: Investors injected an additional $7.5 million into crypto products.
