According to data from CoinShares, escalating geopolitical tensions in the Middle East have triggered the second biggest wave of liquidations in the crypto market in 2026. During this period, institutional investors pulled a total of $1.67 billion from cryptocurrency funds. Investment losses became especially pronounced among US and German investors, while XRP-focused investment products managed to remain in positive territory.
XRP sees $20.3 million inflow as $1.67 billion exits crypto funds
Five-week decline accelerates from fund outflows
Despite XRP seeing a 36% decrease in weekly inflows, the asset clearly diverged from the steep declines observed in Bitcoin and Ethereum. In total, the last three weeks saw $4.21 billion withdrawn from crypto funds across the sector. This wave of withdrawals largely erased optimism around the CLARITY Act on the US regulatory front.
CoinShares, a Europe-based research and asset management firm, is known for publishing regular flow reports on digital asset investment products.
James Butterfill, Research Director at CoinShares, stated that the market has contracted for five consecutive weeks, drawing increasing comparisons to the extended downturn witnessed in January.
The total assets under management (AUM) in crypto funds slipped to $141.924 billion. James Butterfill at CoinShares reiterated that market conditions are increasingly resembling the protracted slump seen at the start of the year, as the data shows a sustained five-week contraction.
The strongest selling pressure originated from the US, where investors withdrew a staggering $1.63 billion on their own. Across Europe, the picture also weakened as Germany—previously seen as more resilient during past shocks—posted $25.7 million in net outflows this week.
XRP stands out amid Europe’s rising sales
On top of Germany’s withdrawals, Sweden saw $6.6 million in outflows, and Hong Kong posted $4.5 million withdrawn from crypto funds. By contrast, the Netherlands defied the broader trend, recording a net inflow of $1.3 million.
Amid this challenging environment, XRP emerged as one of the few assets resisting the global wave of selling. While weekly XRP fund inflows dropped from $31.8 million the previous week to $20.3 million, the products maintained positive territory.
| US | $1.63 billion | Outflow |
| Germany | $25.7 million | Outflow |
| Sweden | $6.6 million | Outflow |
| Hong Kong | $4.5 million | Outflow |
| Netherlands | $1.3 million | Inflow |
| XRP | $20.3 million | Inflow |
This performance put XRP among the most resilient products, outpacing billion-dollar losses in larger cryptocurrencies. Net inflows to XRP-focused products since the start of the year have now reached $311 million, bringing their total assets under management to $2.473 billion.
Other projects remain positive
In addition to XRP, only a handful of projects managed to stay positive, mainly within Europe. Hyperliquid funds attracted $10.8 million, while Near’s products recorded $7.6 million in inflows. Still, the overall trend highlights the persistent impact of geopolitical risks on institutional appetite.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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