Crypto funds snap outflow streak with $1bn inflows amid Middle East strikes

Crypto funds demonstrated remarkable resilience this week as investment products recorded $1.06 billion in net inflows, effectively terminating a grueling five-week stretch of $4.0 billion in outflows.

Crypto funds see $1 billion resurgence

This pivot comes at a critical juncture for global markets as the escalating US-Iran conflict has introduced severe geopolitical instability following military strikes in late February 2026.

While the broader market context remains defensive due to these tensions, institutional sentiment was buoyed by recent price weakness and technical resets, which large-scale holders interpreted as an attractive entry window.

Regional participation was overwhelmingly positive, with the United States accounting for $957 million of the total inflows despite the geopolitical headwinds. Other key markets including Canada, Germany, and Switzerland also saw continued interest, contributing a combined $94.2 million.

Bitcoin (BTC) remained the primary beneficiary of this trend, capturing $881.5 million in weekly inflows.

However, the market remains polarized as evidenced by $3.7 million flowing into short-bitcoin products, suggesting that a segment of investors is still hedging against potential downside risks linked to the ongoing conflict in the Middle East.

Ethereum saw a significant resurgence with $116.9 million in inflows, its strongest performance since mid-January, indicating that institutions are looking past short-term volatility toward long-term value.

In the altcoin sector, Solana continues its dominant streak, attracting $53.8 million last week and bringing its year-to-date inflows to $156 million. Chainlink also recorded minor interest with $3.4 million in inflows.

The strong institutional activity suggests that while geopolitical events like the US-Iran strikes create short-term fear, the “smart money” is utilizing the resulting price resets to rebuild positions in core digital assets.