Despite global market turbulence due to the Iran-Israel conflict, cryptocurrency investment products managed by firms such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares recorded inflows of $1.9 billion. This was reported in a CoinShares report.
“Despite geopolitical risks that pressured risk assets last week, digital assets remained resilient and, like gold, recorded inflows,” wrote James Butterfill, head of research at the company, on Monday.
Over nine weeks, global crypto funds saw net inflows totaling $12.9 billion, with the year-to-date figure at $13.2 billion. The AUM of these structures reached $179 billion.
Bitcoin Takes Priority
Investment products based on the leading cryptocurrency showed a strong recovery, with an increase of $1.3 billion over seven days following two weeks of minor outflows.
Total assets under management reached $156.7 billion, with American spot ETFs contributing significantly to this figure.
Products based on short positions in bitcoin experienced a small outflow of $3.7 million.
Ethereum, XRP, and Sui
Over the past week, net inflows into Ethereum ETFs amounted to $585 million, the best performance since February.
Ether-based funds also maintained positive momentum, recording a net inflow of $585 million for the week. Of this amount, $528.2 million came from American Ethereum ETFs. However, a record 19-day inflow streak ended on Friday, with ETF AUM decreasing by $2.18 million.
Investment products based on Ripple’s XRP recorded their first net inflow in three weeks, amounting to $11.8 million. Sui-based funds attracted $3.5 million.
US Leads the Way
“In a regional context, investor sentiment is generally positive. The US leads with an inflow of $1.9 billion, followed by Switzerland, Germany, and Canada with inflows of $20.7 million, $39.2 million, and $12.1 million, respectively. In contrast, Hong Kong and Brazil faced outflows of $56.8 million and $8.5 million,” noted Butterfill.
Over the past week, bitcoin slightly decreased by 0.9%, while Ethereum rose by 3.6%, according to CoinGecko.
“The market shows resilience despite geopolitical risks, which is encouraging, especially considering the return of retail investors and algorithmic traders,” noted Valentin Fournier, a leading analyst at BRN, in a conversation with The Block.
However, he warned that the lack of clarity on rate cuts by the [Fed] and declining institutional interest in Ethereum could signal “potential volatility on the path to historical highs.”
Back in July, senior Bloomberg exchange analyst Eric Balchunas predicted a “summer of altcoin ETFs.”