Global digital asset investment products recorded $1.67 billion in net outflows for the week ending May 29, 2026, marking the third consecutive week of redemptions for the sector. Data from digital asset investment firm CoinShares indicates this was the second-largest weekly outflow of the year, as institutional investors pulled back amid escalating geopolitical tensions in Iran and rising Treasury yields. While Bitcoin and Ethereum bore the brunt of the liquidations, XRP bucked the trend by drawing $20.3 million in fresh inflows.
The total assets under management (AuM) for all digital asset products fell to $141 billion, down from $148 billion the prior week. This represents the lowest level recorded since early April. Geographically, the United States accounted for nearly the entire sum of withdrawals, with $1.63 billion in net outflows. Other regions also saw minor retreats, including Germany at $25.7 million, Switzerland at $16.2 million, and Canada at $12.5 million. This risk aversion follows a period where crypto liquidations rose alongside Treasury yields and a strengthening U.S. dollar.
Institutional demand for XRP grows amid regulatory progress
The $20.3 million inflow into XRP products highlights a growing divergence between the token and the broader market. A primary driver of this sentiment is the legislative advancement of the CLARITY Act, a bipartisan regulatory framework. On May 14, 2026, the Senate Banking Committee voted 15-9 to advance the bill, which explicitly classifies XRP as a digital commodity under the jurisdiction of the Commodity Futures Trading Commission (CFTC). This move has provided needed legal clarity for institutional engagement.
And Ripple has bolstered this momentum by announcing 10 new institutional partnerships in the first half of 2026. These agreements focus on On-Demand Liquidity (ODL) and tokenized asset issuance, involving three Asian banks, a major European custodian, and two U.S. payment processors. This expanding commercial footprint, combined with recent XRP legislative progress, has created structural demand that appears insulated from the volatility affecting Bitcoin.
Bitcoin and Ethereum face deepening institutional outflows
Bitcoin suffered its largest weekly outflow of 2026, with investors pulling $1.44 billion from funds tied to the digital currency. BlackRock’s IBIT led the decline with $966.42 million in weekly outflows, while Fidelity’s FBTC and Grayscale’s GBTC shed $169.15 million and $175.09 million respectively. Analysts noted a distinct lack of demand from major allocators; for instance, MicroStrategy reportedly made no Bitcoin purchases between May 18 and May 24, as Bitcoin prices struggled at key resistance levels around $77,000.
Ethereum products likewise struggled, largely due to structural disadvantages in the U.S. market. Most American spot Ethereum ETFs do not pass through staking yields to shareholders, making them a less efficient vehicle compared to holding the asset directly. Furthermore, Ethereum is facing stiff competition from faster Layer 1 networks such as Solana. These factors contributed to the broader institutional pivot away from the leading smart-contract platform during the late May sell-off.
Technical maturation and ETF lifecycle advantages
Technical developments on the XRP Ledger (XRPL) have also supported the asset’s recent decoupling. The activation of the fixCleanup3 amendment in mid-May signaled continued development velocity for the network. This comes as XRP ETFs, which launched in November 2025, remain in an “absorption phase.” Unlike Bitcoin ETFs that debuted in early 2024 and have already absorbed most initial institutional capital, XRP products are still capturing first-time allocators.
Regional data outside of North America further reflected the cautious global sentiment. Sweden saw $6.6 million in outflows, while Hong Kong recorded combined outflows between $4.5 million and $12.2 million depending on the specific product track. With cumulative net outflows reaching $4.21 billion over the last three weeks, the market is closely watching whether XRP can maintain its unique trajectory if macroeconomic pressure continues to weigh on the digital asset class.