Digital asset investment products recorded $619 million in inflows last week despite the Iran crisis, with Bitcoin (CRYPTO: BTC) dominating at $521 million while XRP (CRYPTO: XRP) bled $30.3 million in outflows.
The Weekly Flow Pattern
Early optimism was evident with inflows of $1.44 billion during the first three days of the week, according to Coinshares Research Blog.
However, sentiment weakened later with outflows of $829 million on Thursday and Friday, despite payroll figures coming in significantly weaker than expected.
The rise in oil prices offset any potential decline in inflation that might otherwise have resulted from weak payroll data. Ultimately, the $619 million net inflow points to broadly positive sentiment toward crypto during a period of geopolitical stress.
Bitcoin spot ETFs recorded net inflows of $568 million from March 2 to March 6.
Ethereum (CRYPTO: ETH) spot ETFs saw net inflows of $23.56 million while Solana (CRYPTO: SOL) spot ETFs had net inflows of $24.05 million.
The Regional Breakdown
The U.S. was almost the sole driver of positive sentiment, recording inflows of $646 million.
In contrast, investors in Europe, Asia, and Canada were more cautious with outflows of $23.8 million, $2.2 million, and $3.6 million respectively.
This geographic split highlights differing risk appetites. U.S. investors viewed the Iran conflict as a buying opportunity while European and Asian investors remained defensive.
The Iran Crisis Response
The initial market reaction to the Iran crisis proved supportive for crypto. The asset class demonstrated resilience during geopolitical stress, with early-week inflows of $1.44 billion showing strong institutional demand.
The late-week reversal on Thursday and Friday reflected shifting concerns as oil prices rose.
Rising oil prices typically signal inflation fears, which can pressure risk assets. However, the net positive flow for the week suggests institutional buyers viewed the dip as an opportunity.
Image: Shutterstock