Crypto investment products held steady last week, making decent inflows despite continued market turmoil fueled by fears of an energy crisis as a result of the US-Israeli war with Iran.
CoinShares reported on Monday that crypto exchange-traded products (ETPs) recorded $619 million in inflows last week, with $521 million coming to Bitcoin (BTC) investment products.
The gains come after last week’s $1 billion inflows, the second consecutive week after a massive sell-off that saw nearly $4 billion in outflows over five weeks.
Despite ending the week in the green, sentiment weakened toward the end of the week, with $829 million withdrawn on Thursday and Friday.
“Ultimately, higher oil prices will offset any potential decline in inflation that might otherwise result from weak wages data,” said James Butterfill, head of research at CoinShares. He added that the overall data points to “positive sentiment towards the asset class in a period of geopolitical stress”.
Bitcoin flows green year to date
After the latest inflow, Bitcoin ETPs turned positive year-to-date, with $117 million inflows compared to $408 million inflows a week ago.
Positive sentiment remained in the major altcoin ETPs, with Ether (ETH) posting around $86 million in inflows, while Solana (SOL) saw around $15 million in inflows.
XRP (XRP) was the only asset to see a meaningful outflow of more than $30 million. A week ago, XRP saw nearly $2 million in revenue.
Despite the outflows, XRP remains in the green year to date with $123 million in inflows, while Ether is still underwater with $340 million in outflows. Solana has recorded 170 million dollars in revenue till date.
Assets under management in crypto ETPs increased to $135.4 billion, while total YTD inflows are $45 million.
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The CoinShares update comes amid ongoing geopolitical uncertainty surrounding Iran, with the Crypto Fear & Greed Index falling to 8 points, indicating “extreme fear”.
CoinShares said last week that its main case for near-term consolidation remains with a downside bias, as the macro environment is “not directly supportive” and further geopolitical uncertainty “will reduce risk appetite both ways.”
This view is consistent with CryptoQuant’s assessment that the current geopolitical environment is unfavorable for Bitcoin, given the asset’s volatility.
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