Crypto Funds Attract $1.9B Amid Bitcoin Surge and Geopolitical Tensions

Global crypto investment products recorded a net inflow of $1.9 billion last week, highlighting renewed investor confidence amid rising Bitcoin prices and ongoing geopolitical tensions.

The bulk of the inflows were captured by major asset managers including BlackRock, Fidelity, Bitwise, Grayscale, ProShares, and 21Shares. It marks the ninth consecutive week of positive flows, bringing year-to-date inflows to a record $13.2 billion. Assets under management (AUM) now stand at approximately $179 billion.

Bitcoin Funds Lead the Charge

Bitcoin investment products were the primary driver of last week’s inflows, adding $1.3 billion, rebounding from two weeks of mild outflows. Spot Bitcoin ETFs accounted for the lion’s share, attracting $1.37 billion. Short-Bitcoin products also saw modest inflows of $3.7 million.

Ethereum products maintained positive momentum as well, bringing in $585 million, lifting total inflows since February to $2 billion, representing 14% of Ethereum’s total AUM of $14.9 billion. However, U.S.-listed Ethereum ETFs broke a 19-day inflow streak with a $2.1 million outflow on Friday.

Among altcoins, XRP products saw their first inflows in three weeks, with $11.8 million added. SUI-focused funds attracted $3.5 million.

U.S. Leads Global Inflows

Regionally, the United States led all markets with $1.9 billion in inflows, followed by Germany ($39.2 million), Switzerland ($20.7 million), and Canada ($12.1 million). In contrast, Hong Kong and Brazil recorded net outflows of $56.8 million and $8.5 million, respectively.

Bitcoin Surges Past $106K

Bitcoin climbed above $106,000 early Monday, driven by safe-haven demand amid escalating tensions between Iran and Israel. As of 12:30 a.m. ET, the world's largest cryptocurrency was trading at $106,222, up 0.25% in the past 24 hours.

Rachel Lucas, a crypto analyst at BTC Markets, noted that while geopolitical instability briefly drove Bitcoin down 4%, it quickly rebounded, highlighting its perceived role as a hedge during times of crisis.

Lucas added that Bitcoin’s price movement is currently influenced by a mix of institutional capital flows, macroeconomic indicators, and geopolitical risk. The crypto “Fear & Greed” index is holding at 61, reflecting a cautiously optimistic investor sentiment.

Ethereum also posted gains, rising 1.48% to $2,569. Analysts expect institutional momentum for Ethereum to strengthen further, especially with upcoming catalysts such as a potential “DeFi Summer 2.0.”

All Eyes on the Fed

Investors are now turning their attention to the U.S. Federal Reserve's policy meeting scheduled for Tuesday and Wednesday. According to CME’s FedWatch tool, there’s a 96.7% chance the Fed will keep interest rates unchanged between 4.25% and 4.50%.

Meanwhile, the Financial Times reported that former U.S. President Donald Trump has urged Fed Chair Jerome Powell to slash rates by a full percentage point, warning that the White House may need to “intervene” otherwise.

What's Ahead

Market watchers believe upcoming announcements from the U.S. Securities and Exchange Commission (SEC) and the Treasury Department, particularly on ETFs and stablecoins, could significantly influence investor sentiment and fund flows in the weeks ahead.

Despite global uncertainty, the resilience of digital assets continues to grow, with Bitcoin and Ethereum reaffirming their positions as core components in the portfolios of both institutional and retail investors.