In brief
- Digital asset investment products recorded $1.06 billion in inflows last week, extending to a three‑week streak.
- U.S. investors accounted for 96% of total flows, highlighting the dominance of the American ETF market.
- Bitcoin captured roughly three‑quarters of inflows, while Ethereum saw strong demand following new U.S. staking ETF listings.
Digital asset investment products attracted $1.06 billion in inflows last week, marking the third consecutive week of gains as investors increased allocations to crypto amid geopolitical uncertainty, according to a report from asset manager CoinShares published Monday.
The continued inflows suggest institutional investors are turning to digital assets as portfolio diversifiers during periods of global stress, with Bitcoin in particular benefiting from its perceived role as a macro hedge.
"Significant geopolitical disruption that has reinforced digital assets, particularly Bitcoin, as a relative safe haven compared with other asset classes," wrote James Butterfill, head of research at CoinShares.
Since the start of the Iran crisis, total assets under management in digital asset exchange‑traded products (ETPs) have climbed 9.4% to $140 billion, the report said.
Bitcoin attracted $793 million in new capital, representing about 75% of total inflows. The latest figures bring the three‑week total to $2.2 billion, narrowing the gap with the previous five‑week stretch that saw $3 billion in outflows.
The United States dominated the latest flows, accounting for 96% of global inflows as institutional investors continued to access the market primarily through U.S.-listed spot ETFs.
Canada and Switzerland followed with inflows of $19.4 million and $10.4 million, respectively. Hong Kong recorded $23.1 million in inflows, its largest weekly total since August 2025, while Germany saw outflows of $17.1 million, marking its first weekly withdrawals of the year.
Ethereum recorded $315 million in inflows, pushing year‑to‑date flows close to neutral. The gains were partly driven by the launch of new staking‑focused ETF products in the United States. By contrast, XRP experienced its second consecutive week of outflows, totaling $76 million.
"Sustained inflows exceeding $1 billion into digital asset products amid rising geopolitical tension point to something structural, not cyclical,” Samuel Harcourt, Core Contributor at EVM layer-1 developer Sonic Labs, told Decrypt. He added that capital is “quietly repositioning” as military spending ramps up and traditional financial infrastructure bears the strain of the ongoing Middle East conflict.
A “portfolio diversifier” amid geopolitical tension
George Papp, chief liquidity officer at Altura DeFi, said periods of geopolitical tension often prompt investors to seek assets outside the traditional financial system.
"The strong inflows suggest institutional allocators are viewing digital assets less as speculation and more as a portfolio diversifier during global uncertainty," Papp told Decrypt.
He added that the U.S. continues to dominate flows because spot ETF products have become the main gateway for institutional exposure.
"When risk appetite returns or macro narratives shift, the first place that capital tends to express itself is through those ETF channels," Papp said.
Analysts say the resurgence in crypto ETF demand reflects a mix of geopolitical risk, investors reassessing valuations following a prolonged downturn, and gradual regulatory progress in the sector.
Nick Motz, CEO of ORQO Group and chief investment officer of lending protocol Soil, previously told Decrypt tensions involving Iran have prompted investors to reconsider portfolio construction.
"Digital assets have come back into that conversation pretty naturally as non‑sovereign stores of value," Motz said.
Short‑Bitcoin products also saw inflows of $8.1 million, indicating that investor sentiment remains somewhat divided on the asset’s near‑term outlook.
On prediction market Myriad, owned by Decrypt’s parent company Dastan, users have flipped bullish on Bitcoin’s outlook, placing a 60% chance on the cryptocurrency’s next move taking it to $84,000 rather than $55,000—up from 50% the day before.
Harcourt argued that the short-Bitcoin inflows reflect a “healthy polarisation,” with “bears watching macro headwinds and timing risk,” while bulls are “anchored to the structural demand story.”
Bitcoin is currently trading around $73,900, up 3.3% on the day according to CoinGecko data, having reached an intraday high of $74,387. The cryptocurrency remains down almost 42% from its all‑time high of $126,000 reached in October last year. Ethereum rose 9.5% on the day to $2,292, remaining roughly 54% below its August 2025 peak of $4,946.