Digital asset investment products registered net outflows of $1.67 billion last week, marking the third consecutive period of capital withdrawal. This cumulative exodus has now totaled $4.21 billion over the past 21 days, signaling a sustained deterioration in investor sentiment across the sector. Bitcoin-related products absorbed the heaviest impact, recording their largest single-week outflow of the year at $1.438 billion. Ethereum-related funds followed with $257 million in exits, meaning these two assets accounted for the overwhelming majority of the week's total capital flight. Data compiled by Woofun AI indicates that this concentration reflects broad risk aversion among both institutional and retail participants. In a notable divergence from the broader trend, specific altcoin products bucked the negative momentum. Funds tied to XRP, HYPE, and NEAR recorded net inflows, suggesting that while the market maintains a cautious stance, select investors are actively rotating capital into targeted alternative assets. The report attributes the persistent outflows to a risk-off sentiment driven by escalating geopolitical tensions involving Iran. These macro concerns effectively overshadowed positive industry developments, including progress on the U.S. Clarity Act, which aims to establish clearer regulatory guidelines for digital assets. The capital flight has directly reduced the total assets under management (AUM) for these investment vehicles, which fell from $148 billion to $141 billion over the past week. This $7 billion decline represents a combination of direct capital withdrawals and negative market price movements. Woofun AI notes that the three-week outflow streak demonstrates how macroeconomic and geopolitical factors are currently outweighing industry-specific catalysts. For market participants, this period underscores the acute sensitivity of digital asset markets to global events. While regulatory milestones like the Clarity Act offer positive long-term signals, short-term sentiment remains fragile and highly reactive to external shocks. Investors must closely monitor both geopolitical developments and potential shifts in central bank policy, as these variables will likely dictate capital flows in the coming weeks. The third consecutive week of outflows highlights a cautious market environment shaped primarily by geopolitical uncertainty. Although Bitcoin and Ethereum bore the brunt of the withdrawals, the inflows into select altcoins indicate targeted investor interest rather than a blanket market rejection. The decline in total AUM to $141 billion serves as a stark reminder of the market's current vulnerability to external risks. Woofun AI analysis suggests that until geopolitical stability returns or regulatory clarity solidifies, capital flows may remain volatile and driven by macro fear rather than fundamental asset performance.