Crypto investment products maintained positive inflows last week even as broader markets experienced turbulence tied to concerns about a potential energy crisis linked to the US-Israel conflict with Iran.

According to a report published Monday by CoinShares, cryptocurrency exchange-traded products recorded $619 million in inflows during the week. Bitcoin investment products accounted for the majority of the activity, drawing approximately $521 million. The inflows followed $1 billion in capital entering crypto investment products the previous week, marking two consecutive weeks of positive flows after a period of heavy selling that saw roughly $4 billion exit the sector over a five-week stretch.

Although the week ultimately closed with net inflows, sentiment softened toward the end of the period. Thursday and Friday together recorded $829 million in outflows. “Ultimately, the rise in oil prices offset any potential decline in inflation that might otherwise have resulted from the weak payroll data,” said James Butterfill, head of research at CoinShares. He added that the figures suggest “broadly positive sentiment toward the asset class during a period of geopolitical stress.”

Bitcoin investment products return to positive yearly flows

Following the most recent inflows, Bitcoin exchange-traded products have shifted back into positive territory on a year-to-date basis. Total inflows now stand at roughly $117 million after previously showing $408 million in net outflows just one week earlier. Investor interest extended beyond Bitcoin, with Ether investment products attracting around $86 million during the week and Solana funds recording about $15 million in inflows.

XRP was the only major digital asset investment product to register notable outflows, exceeding $30 million during the week. In contrast, the previous week had seen XRP products record roughly $2 million in inflows.

Despite the recent outflows, XRP remains positive on a year-to-date basis with $123 million in net inflows. Ether products continue to show $340 million in net outflows for the year, while Solana investment products have accumulated approximately $170 million in inflows.

Assets under management across crypto exchange-traded products rose to about $135.4 billion, while total year-to-date flows across the sector reached $45 million.

Market uncertainty persists as sentiment weakens

The report was released amid continued geopolitical uncertainty involving the United States, Israel, and Iran. During the same period, the Crypto Fear & Greed Index dropped to a reading of eight, indicating “extreme fear” among market participants.

CoinShares stated that its base outlook remains centered on short-term consolidation with a slight downside bias, noting that current macroeconomic conditions “are not straightforwardly supportive.” The firm also added that ongoing geopolitical uncertainty “cuts both ways for risk appetite.”

This perspective broadly aligns with analysis from CryptoQuant, which has suggested that the current geopolitical environment may present challenges for Bitcoin due to the asset’s sensitivity to volatility in global markets.

Sources:

https://researchblog.coinshares.com/bitcoins-iran-test-safe-haven-or-coincidence-510a1fd1d80d

https://cointelegraph.com/news/crypto-etp-619-million-inflows-resilience-iran-crisis

https://alternative.me/crypto/fear-and-greed-index/