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

The withdrawals marked the third consecutive week of net outflows and brought total redemptions over the past three weeks to $4.21 billion. CoinShares said concerns surrounding Iran had 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, their lowest level since early April.

The…