$2 Billion Moved Into Crypto—Just as Global Risks Peaked

The latest CoinShares report shows crypto fund flows breached the $2 billion mark last week, recording their strongest weekly inflows since October 2025.

It came as investors sought exposure to crypto markets amid rising geopolitical tensions, renewed tariff threats, and mounting policy uncertainty.

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How Policy Uncertainty Drove Crypto Inflows to $2.17 Billion

The surge in inflows came despite a sharp late-week reversal in sentiment. According to the latest Digital Asset Fund Flows Weekly Report, inflows were concentrated earlier in the week before turning negative on Friday.

That shift followed diplomatic escalation linked to Greenland and fresh threats of additional trade tariffs, which weighed heavily on broader risk sentiment.

By the end of the week, digital asset products had seen $378 million in outflows in a single day, partially offsetting earlier gains.

Policy uncertainty also contributed to sentiment dampening. Market participants reacted to suggestions that Kevin Hassett, widely viewed as a policy dove and a leading contender for the next US Federal Reserve Chair, is likely to remain in his current role.

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The prospect reduced expectations for a near-term shift in monetary policy, adding another layer of caution to already jittery markets.

Bitcoin dominated asset-level flows, drawing $1.55 billion over the week. The scale of inflows suggests that investors continue to view Bitcoin as the primary macro hedge, particularly during periods of geopolitical stress and policy ambiguity.

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Smart Contract Platforms and Altcoins Attract Inflows Despite Regulatory Headwinds

Ethereum also posted a strong performance, recording $496 million in inflows, while Solana attracted $45.5 million.

These gains came despite regulatory headwinds, including proposals under the US Senate Banking Committee’s CLARITY Act that could limit stablecoin issuers from offering yield.

The continued appetite for smart contract platforms indicates that investors are looking beyond near-term regulatory noise and positioning for longer-term adoption trends.

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Altcoins also participated in the rally. XRP stood out with $69.5 million in inflows, while Sui, LIDO, and Hedera recorded $5.7 million, $3.7 million, and $2.6 million, respectively.

The breadth of inflows across large- and mid-cap tokens points to improving risk appetite earlier in the week, even as macro headlines later curtailed momentum.

Beyond tokens, blockchain equities also had a notably strong week, attracting $72.6 million in inflows. The performance highlights sustained investor interest across the broader digital asset ecosystem, not just in spot crypto exposure.

Last week’s crypto fund flows reflect how quickly sentiment can shift, given the $454 million outflows seen in the week ending January 10.

The scale of weekly inflows suggests that geopolitical instability, trade uncertainty, and unclear policy signals are increasingly pushing capital toward digital assets as part of a diversified risk strategy.