Crypto Funds Pull In $1B for Third Straight Week as US Investors Drive Demand

Summary

Digital asset investment products saw $1.06 billion in inflows last week, marking three straight weeks of gains as investors sought crypto exposure amid geopolitical uncertainty. Bitcoin accounted for 75% of new capital, with $793 million in inflows, reinforcing its image as a macroeconomic hedge. U.S.-listed spot ETFs dominated activity, representing 96% of global inflows. Other regions such as Canada, Switzerland, and Hong Kong also recorded inflows, while Germany saw outflows for the first time this year. Ethereum attracted $315 million, aided by new U.S. staking-focused ETFs, while XRP experienced $76 million in outflows. Total assets under management in digital asset ETPs have grown 9.4% to $140 billion since the start of the Iran crisis. Short-Bitcoin products also saw inflows, indicating mixed market sentiment. Analysts attribute persistent high inflows to geopolitical risk, institutional diversification, and improving regulatory clarity, with digital assets increasingly viewed as portfolio diversifiers rather than speculative bets. Bitcoin currently trades around $73,900, up 3.3% on the day, while Ethereum is at $2,292, up 9.5%.