Bitcoin ETFs Attract $388.3 Million Despite Geopolitical Tensions

Bitcoin ETFs in the United States have continued to attract significant inflows despite the ongoing geopolitical tensions between Israel and Iran. BlackRock’s IBIT led the way with nearly $279 million in inflows, while Fidelity’s FBTC also saw impressive gains. This trend highlights the resilience of Bitcoin ETFs in the face of global uncertainties.

On June 18, spot Bitcoin ETFs recorded $388.3 million in inflows, marking the eighth consecutive day of capital injections. This sustained demand indicates strong institutional confidence in Bitcoin, even as markets initially reacted nervously to developments in the Middle East. BlackRock’s iShares Bitcoin Trust (IBIT) was the top performer with $278.9 million in inflows, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $104.4 million. Other ETFs, such as the Bitwise Bitcoin ETF (BITB), also showed strength with an $11.3 million inflow.

Despite the geopolitical tensions, Bitcoin remained resilient, staying within the $104,000 to $105,000 range throughout the day. This behavior mirrors patterns observed during previous geopolitical events, such as the Russia-Ukraine war in 2022 and the Israel-Palestine conflict in late 2023, where Bitcoin initially dropped but quickly stabilized.

In contrast, Grayscale products experienced major outflows. The Grayscale Bitcoin Trust ETF (GBTC) lost $16.4 million, while its lower-cost counterpart, the Grayscale Bitcoin Mini Trust, shed another $10.1 million. However, the broader trend remains positive, with Bitcoin ETFs recording just eight days of net outflows since April 17 and attracting $11.2 billion in inflows.

In total, more than $46.3 billion has flowed into the eleven US-based Bitcoin ETFs to date, with BlackRock’s IBIT and Fidelity’s FBTC managing $50.6 billion and $11.5 billion in assets, respectively. This includes large outflows of $23.2 billion from Grayscale’s GBTC product.

Meanwhile, spot Ether ETFs in the US are also seeing increased attention. Despite a brief pause in inflows on June 13, the funds bounced back with three straight days of inflows between June 16 and 18. BlackRock’s iShares Ethereum Trust ETF (ETHA) is leading the Ether ETF market, experiencing only two days without inflows since May 20.

While the Middle East tensions did not slow down inflows into Bitcoin ETFs, they did impact the crypto space in Iran. Iran’s central bank imposed strict operating hours on domestic cryptocurrency exchanges after a major security breach at Nobitex, the country’s leading crypto trading platform. The new regulations restrict trading to between 10 am and 8 pm to improve oversight and manage potential future attacks during working hours.

The decision was made after a pro-Israel hacker group claimed responsibility for an exploit that drained over $100 million from Nobitex’s hot wallets across multiple cryptocurrencies. The stolen funds were not transferred to new wallets for profit but were instead sent to burner addresses, permanently removing them from circulation. This politically motivated attack stands out in contrast to typical financially driven exploits.

Nobitex confirmed the breach publicly and announced that external access to its servers had been severed. The exchange reassured its users that its reserve fund will fully cover the losses and that affected hot wallets are being moved to cold storage. However, internet disruptions and restricted server access are likely to delay the restoration of user access.

Chainalysis shed some light on Nobitex’s central role in Iran’s digital asset ecosystem, with more than $11 billion in inflows. This is much larger than the next ten Iranian exchanges combined. The platform is seen as a vital link for Iranians navigating sanctions to participate in global crypto markets. However, its operations have also been connected to groups considered terrorist organizations by Western authorities, as well as sanctioned Russian exchanges.

Tensions are also mounting in other parts of the world. Telegram founder Pavel Durov warned that France risks facing societal collapse if it continues pursuing what he describes as a misguided path of censorship and overregulation. In an interview, Durov expressed his disappointment with President Emmanuel Macron’s leadership, stating that France is becoming “weaker and weaker” and losing its competitive edge. He explained that failing to enact necessary reforms and raising generations under restrictive ideologies could lead to extreme transformations or even collapse.

Durov’s comments are part of a broader media campaign he undertook since his arrest in France in August of 2024. That arrest drew a lot of backlash from the crypto industry and global civil rights advocates, who saw it as a threat to free speech and digital sovereignty. While the legal case is still under international scrutiny, Durov speaks out against what he sees as creeping authoritarianism under the guise of regulatory reform.

In the interview, Durov also made serious allegations against France’s intelligence services by claiming that their chief approached him and requested the censorship of pro-conservative content ahead of Romania’s May 2025 presidential election. Durov said he refused the request as it contradicted the principles of open discourse. He also criticized the European Union’s Digital Services Act, describing it as a deceptive legislative framework that could enable widespread censorship under the pretext of consumer protection and misinformation control. Durov warned that such laws are inherently dangerous, as they could eventually be turned against those who helped enact them.