Crypto investment products held firm last week, clocking decent inflows despite ongoing market turmoil caused by fears of an energy crisis fueled by the US-Israel war with Iran.
Crypto exchange-traded products (ETPs) recorded $619 million in inflows last week, led by $521 million into Bitcoin (BTC) investment products, CoinShares reported Monday.
The gains followed the previous week’s $1 billion in inflows, marking two consecutive weeks of gains after a major sell-off that saw roughly $4 billion in outflows in a five-week streak.
Despite ending the week in the green, sentiment weakened later in the week, with $829 million in outflows on Thursday and Friday.
“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, CoinShares’ head of research. He added that the overall data pointed to “broadly positive sentiment toward the asset class during a period of geopolitical stress.”
Bitcoin flows turn green year-to-date
Following the latest inflows, Bitcoin ETPs have turned positive year-to-date, with $117 million in inflows, compared with $408 million in outflows a week earlier.
Positive sentiment persisted across major altcoin ETPs, with Ether (ETH) posting about $86 million in inflows, while Solana (SOL) saw roughly $15 million in inflows.
XRP (XRP) was the only asset to see meaningful outflows of more than $30 million. A week prior, XRP saw around $2 million of inflows.
Despite the outflows, XRP remains in the green year-to-date, with $123 million in inflows, while Ether is still underwater with $340 million in outflows. Solana has recorded $170 million in inflows year-to-date.
Total assets under management in crypto ETPs rebounded to $135.4 billion, while total YTD flows are at $45 million.
Related: Spot Bitcoin ETFs post second straight weekly inflows for first time in 5 months
CoinShares’ update came amid ongoing geopolitical uncertainty tied to Iran, with the Crypto Fear & Greed Index dropping to a score of eight, signaling “extreme fear,” on Monday.
CoinShares said last week its base case remains near-term consolidation with a modest downside bias, as the macro environment “is not straightforwardly supportive,” and further geopolitical uncertainty “cuts both ways for risk appetite.”
The view aligns with CryptoQuant’s assessment that the current geopolitical environment is unfavorable for Bitcoin, given the asset’s volatility.
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