Bitcoin-based funds lead $619 million in weekly crypto ETP inflows despite Iran-driven market volatility: CoinShares

Global crypto investment products issued by asset managers such as BlackRock, Grayscale, and Bitwise recorded $619 million in net inflows last week, extending a rebound in investor demand even as geopolitical tensions and energy markets injected fresh volatility into global financial markets, according to CoinShares.

The inflows mark the second consecutive week of positive flows after investors poured roughly $1 billion into funds the week prior, breaking a five-week outflow streak that had weighed on the market earlier in the year.

CoinShares’ latest weekly report suggests demand remained resilient despite shifting macro conditions tied to the Iran conflict and rising oil prices.

Investor appetite was strongest early in the week, with $1.44 billion flowing into crypto investment products during the first three days before sentiment cooled.

Net outflows totaling $829 million on Thursday and Friday trimmed the weekly total as oil prices climbed and broader markets reassessed inflation risks, CoinShares’ Head of Research, James Butterfill, wrote on Monday.

Even with the late-week reversal, the data pointed to broadly constructive sentiment toward the asset class during a period of geopolitical stress.

"Ultimately, the rise in oil prices offset any potential decline in inflation that might otherwise have resulted from the weak payroll data," Butterfill noted. "Regardless, the overall flow data points to broadly positive sentiment toward the asset class during a period of geopolitical stress."

US demand drives bitcoin flows

Regionally, funds based in the United States accounted for nearly all of the positive momentum, recording $646 million in inflows. In contrast, funds based in Europe, Asia, and Canada experienced modest withdrawals totaling $23.8 million, $2.2 million, and $3.6 million, respectively.

Bitcoin-based (BTC) funds dominated investor allocations, attracting $521 million during the week. However, positioning in the asset appeared modestly divided, with short-bitcoin investment products also recording $11.4 million of inflows as some investors hedged against renewed volatility.

Investment products underpinned by Ethereum (ETH) attracted $88.5 million in inflows, while funds tied to Solana added $14.6 million.

Smaller inflows were also recorded in funds tracking the prices of Uniswap and Chainlink, each drawing about $1.4 million. XRP-based funds were the only major category to record notable outflows, totaling $30.3 million.

The regional breakdown aligns with ETF data showing that U.S. spot crypto funds drove much of the demand during the week.

From March 2 through March 6, spot bitcoin ETFs recorded net inflows of about $568 million, while spot Ethereum and Solana ETFs added roughly $23.6 million and $24 million, respectively, per SoSoValue data. Spot XRP ETFs posted net outflows of just over $4 million.

The flows came as bitcoin traded just above $68,000, up roughly 3% over the past week but still below the $70,000 level after briefly rallying into the mid-$70,000 range amid heightened geopolitical tension.

Despite turbulence in the Middle East and oil supply uncertainty, the persistence of inflows suggests that some investors continue to treat price pullbacks as entry opportunities, particularly in the United States, where ETF demand remains the dominant driver of institutional exposure to crypto markets.