Digital Assets See $1.9 Billion Inflow Amid Geopolitical Uncertainty

Digital assets demonstrated remarkable resilience amidst geopolitical uncertainty, attracting significant capital inflows. Last week, digital asset products saw a substantial inflow of $1.9 billion, marking the ninth consecutive week of positive trends. This influx has pushed the total inflows during this period to $12.9 billion, with year-to-date figures reaching a record $13.2 billion.

Bitcoin, the leading digital asset, experienced a strong rebound with $1.3 billion in fresh inflows, reversing two weeks of minor outflows. Short-bitcoin funds also saw slight inflows of $3.7 million, although their total assets under management remained low at $96 million. Ethereum continued its upward momentum, attracting $583 million in inflows, the highest since February. This surge brought Ethereum’s cumulative inflows to $2 billion, representing 14% of its total assets under management.

Other digital assets also saw renewed interest. XRP reversed a three-week outflow trend with $11.8 million in inflows. Sui attracted another $3.5 million, while Solana, Cardano, and Chainlink noted modest inflows of $1.3 million, $0.4 million, and $0.3 million, respectively. However, multi-asset investment products recorded $14 million in outflows for the fourth consecutive week, and Litecoin saw a minor outflow of $0.1 million.

Investor sentiment was predominantly optimistic across various regions. The US led with $1.9 billion in inflows, followed by Germany with $39.2 million, Switzerland with $20.7 million, and Canada with $12.1 million. Australia also contributed $9.2 million in inflows over the past week. In contrast, some regions experienced outflows, with the largest being $56.8 million from Hong Kong, followed by Sweden with $16.7 million and Brazil with $8.5 million.

This trend highlights the growing appeal of digital assets as a safe haven during times of market turmoil, attracting significant capital inflows despite broader market uncertainties. The resilience of digital assets, particularly Bitcoin and Ethereum, underscores their increasing acceptance and integration into mainstream investment portfolios. The sustained inflows into digital asset products reflect a broader shift in investor sentiment towards these assets as a hedge against geopolitical risks and market volatility.