Iran Crisis Attracts $619 Million in Crypto Funds Despite Weekend Selfoff: CoinShares

American investors drove most of the crypto fund activity, adding $646 million last week.

Investment products related to digital assets generated net inflows of $619 million last week, according to CoinShares, indicating that the initial response to the Iran crisis was favorable for the sector. Inflows of $1.44 billion were recorded in the first three days of the week, reflecting early investor optimism.

Sentiment weakened later as $829 million left the market on Thursday and Friday. The payouts came even as payrolls numbers were much weaker than expected, a development that could support risk assets.

Geopolitical tensions drive weekly gains

However, higher oil prices have countered any possible slowdown in inflation that could result from weak labor data. Despite the weekend’s breakout, overall weekly trends show that investor sentiment toward digital asset investment products remains broadly positive amid the ongoing geopolitical uncertainty.

Bitcoin attracted the largest share of investment last week, as $521 million went into related investment products, according to the latest edition of CoinShares Digital Assets Weekly Report. However, sentiment was divided against the asset as short Bitcoin products also recorded $11.4 million in new capital. Among altcoins, Ethereum led the activity with $88.5 million, followed by Solana with $14.6 million.

Smaller additions were recorded for Uniswap and Chainlink, each receiving $1.4 million. Multi-industry production in the same period amounted to 5.4 million dollars. XRP, on the other hand, moved in the opposite direction and saw $30.3 million taken from investment products linked to the token.

Most of the positive investor activity came from the United States, where digital asset products collected $646 million. Other regions showed weaker sentiment. For example, Europe left $23.8 million, while Asia and Canada left $2.2 million and $3.6 million, respectively.

Traders struggle with volatility

Bitcoin remained relatively stable, even as rising tensions with Iran pushed oil prices above $115, creating widespread market pressure. Fears of significant supply disruptions through the Strait of Hormuz and broader instability in the Middle East weighed on global stocks, pushing the VIX above 29.

You may also like:

Despite this environment, QCP Capital said Bitcoin has held up better than many other risk assets, a pattern the crypto market has not seen in some time. The options market also showed that traders are less concerned about another sharp decline than the shock earlier last week.

While downside protection is still available, particularly through short-term options with strikes between $61,000 and $64,000, currents indicate expectations of continued volatility rather than a unilateral decline.