Investment products linked to digital assets recorded net inflows of $619 million last week. According to CoinShares, the data suggests that the market initially reacted positively to the Iran crisis. During the first three days of the week alone, inflows reached $1.44 billion, showing early investor optimism.
However, sentiment weakened toward the end of the week as $829 million exited the market on Thursday and Friday. These outflows occurred even though payroll data came in much weaker than expected, which would normally provide support for risk based assets.
Geopolitical Tensions Influence Weekly Performance
Higher oil prices offset any potential drop in inflation that could have resulted from weak labor market data. Despite the withdrawals at the end of the week, overall flows still indicate that investor sentiment toward digital asset investment products remained generally positive amid ongoing geopolitical tensions.
The latest Digital Asset Fund Flows Weekly Report from CoinShares revealed that Bitcoin received the largest portion of investor allocations, with $521 million flowing into related investment products. Even so, sentiment around the asset remained mixed as short Bitcoin investment products attracted $11.4 million in fresh capital.
Among alternative cryptocurrencies, Ethereum recorded the highest inflows with $88.5 million, followed by Solana with $14.6 million. Smaller inflows were also seen in Uniswap and Chainlink, which each attracted $1.4 million. Multi asset investment products received $5.4 million during the same period. In contrast, XRP experienced outflows totaling $30.3 million from funds connected to the token.
Most of the positive investment activity came from the United States, where digital asset products recorded $646 million in inflows. Other regions showed weaker sentiment. Europe saw $23.8 million leave the market, while Asia and Canada recorded outflows of $2.2 million and $3.6 million respectively.
Traders Prepare for Continued Volatility
Bitcoin remained relatively stable even as tensions involving Iran pushed oil prices above $115 and created pressure across global markets. Concerns about possible supply disruptions through the Strait of Hormuz and growing instability in the Middle East placed pressure on global equities and pushed the VIX index above 29.
Despite these conditions, analysts at QCP Capital noted that Bitcoin has performed more resiliently than many other risk based assets, which is a pattern the crypto market has not seen in some time. Activity in the options market also indicates that traders are less worried about another steep decline compared to the initial shock seen last week.
Although traders are still maintaining downside protection, particularly through short term options with strike prices between $61,000 and $64,000, market flows suggest that investors are preparing for continued volatility rather than expecting a sustained one direction decline.#crypto#cryptonews https://t.me/coinsignalpublic https://coinsignals.net
