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Digital Assets Resilient Amid Geopolitical Tensions, Attract $1.9 Billion Weekly Inflows

Bitcoin rebounded with $1.3 billion in inflows, while Ethereum saw $583 million inflows, its strongest since February, bringing its recent run to $2 billion.

Digital asset investment products continue to showcase resilience in the face of global geopolitical tensions, marking their ninth consecutive week of inflows.

As reported by CoinShares on June 16, 2025, digital asset investment products witnessed an impressive $1.9 billion in net inflows last week, marking the 9th consecutive week of positive momentum. This brings the year-to-date (YTD) total to an unprecedented $13.2 billion, setting a new record for the sector.

The consistent inflows come despite heightened geopolitical risks, particularly the market turmoil triggered by Israel's recent military strikes on Iran, which sent shockwaves across global financial markets.

Bitcoin and Ethereum Showcase Resilience Amid Conflict-Driven Volatility

Bitcoin-based investment products rebounded strongly, securing $1.3 billion in inflows after two weeks of minor outflows. U.S. spot Bitcoin exchange-traded funds (ETFs) accounted for the majority of this figure, with $1.37 billion in inflows. Short-Bitcoin products also saw modest inflows of $3.7 million, indicating a balanced investor sentiment.

Ethereum followed suit, continuing its best run since February by generating $585 million in inflows last week. This brings its recent cumulative inflows to $2 billion, accounting for approximately 14% of its total $14.9 billion assets under management (AUM). However, its record-breaking 19-day streak of inflows ended on Friday with a minor outflow of $2.1 million.

Despite these inflows, the Israel-Iran conflict had an immediate impact on crypto prices. Bitcoin experienced a sharp decline of 4.5%, while Ethereum plummeted over 10%. The geopolitical tensions spurred risk-off sentiment, temporarily dragging down market valuations before the inflows helped stabilize the sector.

Altcoins and Regional Perspectives

Altcoins such as XRP and Sui also witnessed renewed investor interest. XRP recorded its first net inflows in three weeks, totaling $11.8 million, while Sui-based funds attracted $3.5 million. The resilience of these altcoins adds diversity to the digital asset market's growth.

From a regional perspective, the U.S. dominated inflows with $1.9 billion, followed by Switzerland ($20.7 million), Germany ($39.2 million), and Canada ($12.1 million). However, Hong Kong and Brazil faced significant outflows of $56.8 million and $8.5 million, respectively.

Market Outlook Amid Geopolitical Risks

Despite uncertainties stemming from geopolitical risks, digital assets have proven to be a viable alternative to traditional risk assets. Bitcoin's price climbed 1.3% last week to $107,186, while Ethereum surged 5.4% to $2,628. Analysts attribute this resilience to the re-entry of retail and algorithmic momentum traders, although concerns over rate cuts and institutional momentum for Ethereum could lead to short-term volatility.

"Despite geopolitical concerns weighing on risk assets last week, digital assets remained resilient, attracting inflows alongside gold." CoinShares Head of Research James Butterfill wrote.

The consistent inflows into digital asset products, alongside gold, underscore their appeal as a hedge against macroeconomic instability.

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