Crypto inflows reach $16.9 billion in H1 2025 driven by geopolitical uncertainty and monetary policy shifts

Crypto inflows reached $16.9 billion in the first half of 2025, driven by geopolitical uncertainty and shifts in monetary policy. This figure is slightly below the $17.8 billion recorded in the first half of 2024, indicating a sustained interest in cryptocurrencies despite a complex global backdrop. The inflows have been driven by a steady stream of positive flows over the past 11 weeks, with last week alone seeing an inflow of $2.7 billion.

Bitcoin has been the primary beneficiary of this trend, capturing $2.2 billion or 83% of last week’s total inflows. This reflects a broadly optimistic sentiment towards the pioneer cryptocurrency. Ethereum also saw substantial inflows, raking in $429 million, which pushed its 2025 inflows to $2.9 billion. This positive momentum for Ethereum has been driven in part by its Pectra Upgrade, which has bolstered investor confidence. In contrast, Solana has seen relatively modest inflows of $91 million this year.

The resilience of crypto inflows amid mounting global risks is noteworthy. The bulk of last week’s flows were concentrated in the US, contributing $2.65 billion. This underscores the US as a key driver of crypto investor sentiment. The consistent inflows, particularly into Bitcoin and Ethereum, signal a growing alignment between crypto and traditional finance in interpreting macro signals. Investors are increasingly viewing digital assets as a hedge against inflation and dollar volatility, driven by heightened geopolitical volatility and uncertainty surrounding monetary policy.

The Federal Reserve’s wavering stance on interest rate cuts has left markets hyper-sensitive to economic indicators, providing a trading compass for macro-savvy investors. Despite equities chopping sideways and bond yields rising, digital assets continue to attract capital, suggesting a shift from speculative trading to strategic allocation. This trend is evident in the consistent inflows, which have totaled nearly $6 billion over the last three weeks alone.

The sustained inflow of capital into crypto assets reflects a broader trend of institutional conviction in the sector. Despite the complex global backdrop, investors remain optimistic about the long-term prospects of digital assets. The consistent inflows into Bitcoin and Ethereum, in particular, underscore the growing acceptance of these assets as part of a diversified investment portfolio. As the first half of 2025 comes to a close, the crypto market shows no signs of slowing down, with investors continuing to allocate capital to digital assets as a strategic hedge against macroeconomic uncertainties.

BlackRock dominated the crypto investment landscape, attracting over $17 billion, which accounted for 96% of total inflows. Bitcoin investment products absorbed 83-84% of inflows, with institutional interest concentrated in the United States. Positive sentiment followed Ethereum's Pectra Upgrade, contributing significantly to its investment inflows.

The surge in crypto investments, driven by heightened geopolitical and monetary uncertainties, reflects growing mainstream adoption. Institutional investors are increasingly allocating resources into regulated products like ETPs and ETFs. Geopolitical and macroeconomic shifts have spurred increased allocation to digital assets, notably Bitcoin and Ethereum. As a result, Bitcoin traded between $101,000 and $108,000, while the total value locked in crypto investment products hit $184.4 billion.

The influx of funds into digital assets, mirroring trends from H1 2024, indicates sustained institutional interest. Analysts suggest that continued geopolitical volatility could further push crypto markets upward, without significant regulatory or policy changes on the horizon. Financial analysts expect sustained inflows, bolstered by the growing appeal of digital assets. With Bitcoin and Ethereum leading the charge, eyes remain on potential regulatory developments and their impact on future inflow patterns.