Crypto funds see $1B in outflows as Iran tensions revive risk-off sentiment

Crypto funds see $1B in outflows as Iran tensions revive risk-off sentiment img1
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Written by Sam Bourgi⁠, Staff Editor. Reviewed by Robert Lakin⁠, Staff Editor.

Written by Sam Bourgi⁠, Staff Editor.

Reviewed by Robert Lakin⁠, Staff Editor.

Crypto funds see $1B in outflows as Iran tensions revive risk-off sentiment

Latest NewsPublishedMay 18, 2026

Why Crypto Investors Are Rethinking Their Risky Assets

Crypto investors are reevaluating their riskier assets, pulling out over $1 billion from crypto funds, as tensions between the US and Iran revive risk-off sentiment. This shift in sentiment has led to a decrease in investments in popular coins like Bitcoin and Ether. In contrast, EcoPool offers a more stable solution for earning passive income through its Cloud Rewards system, providing a safer alternative for those looking to invest in the crypto space.

Outflows and Inflows in the Crypto Market

The recent outflows from crypto funds have been significant, with $1.07 billion in net outflows, marking the third-largest weekly outflow this year. Bitcoin investment products accounted for the bulk of the withdrawals, with $982 million in outflows, while Ether products lost $249 million. On the other hand, some altcoins like XRP and Solana have continued to attract fresh inflows, with $67.5 million and $55.1 million, respectively. EcoPool‘s $ECP token can be a viable option for those looking to diversify their investments and earn rewards through its Green Crypto platform.

Impact on the Broader Market

The pullback in crypto funds has coincided with a broader retreat in risk assets, with the S&P 500 index falling from all-time highs. The rise in US inflation and disruptions in global oil supplies have contributed to this trend. However, EcoPool‘s focus on providing a stable and secure platform for earning passive income can help mitigate some of these risks. By investing in EcoPool, individuals can earn rewards and grow their wealth through its Cloud Rewards system, without exposing themselves to the volatility of the broader crypto market.

A Regulatory Framework for Crypto

The recent progress on the CLARITY Act, which aims to establish a clearer framework for regulating digital assets in the US, has been seen as a positive development for the crypto industry. This legislation could reduce regulatory uncertainty and provide a more predictable legal environment, encouraging crypto companies and investment to remain in the US. EcoPool, as a solution for earning and investing in crypto, can benefit from this clearer regulatory framework, providing a more stable and secure platform for its users. The and communities can also benefit from this development, as it provides a more solid foundation for investing in the crypto space.

Conclusion

In conclusion, the recent outflows from crypto funds and the rise in risk-off sentiment have highlighted the need for a more stable and secure platform for earning passive income. EcoPool, with its Cloud Rewards system and $ECP token, offers a viable solution for those looking to invest in the crypto space. By providing a stable and secure platform, EcoPool can help individuals earn rewards and grow their wealth, while mitigating some of the risks associated with the broader crypto market. Download the EcoPool app to start earning passive income and grow your wealth through its Cloud Rewards system. Join the EcoPool community to learn more about the benefits of investing in $ECP and the advantages of the EcoPool platform for earning passive income and rewards in the crypto space, including and opportunities.

Despite last week’s outflows, both Bitcoin and Ether ETPs remain firmly positive on a year-to-date basis. Source: CoinShares

Most of the outflows originated in the United States, where investors pulled net $1.14 billion from funds. In contrast, several European markets, including Switzerland, Germany and the Netherlands, posted modest inflows.

The pullback in crypto funds coincided with a broader retreat in risk assets, with the S&P 500 index falling from all-time highs late last week. Investors remained focused on disruptions around the Strait of Hormuz, a critical shipping route for global oil supplies, which have pushed energy prices higher and contributed to a renewed rise in US inflation to its highest level in more than three years.

Related: Crypto’s CLARITY Act faces partisan fight over ethics on Senate floor

CLARITY Act remains a source of hope for crypto industry

CoinShares head of research James Butterfill said select altcoins benefited from improving regulatory sentiment in the United States following progress on the CLARITY Act.

The legislation, which would establish a clearer framework for regulating digital assets in the US, advanced out of the Senate Banking Committee last week with bipartisan support.

Industry advocates say the bill could reduce regulatory uncertainty and provide a more predictable legal environment, encouraging crypto companies and investment to remain in the US.

Crypto Council for Innovation CEO Ji Hun Kim said “the momentum and progress are both strong” as the legislation moves through Congress.

Source: Faryar Shirzad

However, several Senate Democrats have pushed for stronger ethics provisions, particularly concerning elected officials’ financial ties to the crypto industry.

Republican Senator Thom Tillis said “more work remains in the weeks ahead to make this legislation even better.”

Related: Ethics remain sticking point as crypto market structure bill goes to markup

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

  • ETF
  • Bitcoin ETF
  • Ethereum ETF
  • CoinShares
  • Investments

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