"Significant geopolitical disruption that has reinforced digital assets, particularly Bitcoin, as a relative safe haven compared with other asset classes," wrote James Butterfill, head of research at CoinShares.
Since the start of the Iran crisis, total assets under management in digital asset exchange‑traded products (ETPs) have climbed 9.4% to $140 billion, the report said.
Bitcoin attracted $793 million in new capital, representing about 75% of total inflows. The latest figures bring the three‑week total to $2.2 billion, narrowing the gap with the previous five‑week stretch that saw $3 billion in outflows.
The United States dominated the latest flows, accounting for 96% of global inflows as institutional investors continued to access the market primarily through U.S.-listed spot ETFs.
Canada and Switzerland followed with inflows of $19.4 million and $10.4 million, respectively. Hong Kong recorded $23.1 million in inflows, its largest weekly total since August 2025, while Germany saw outflows of $17.1 million, marking its first weekly withdrawals of the year.
"Sustained inflows exceeding $1 billion into digital asset products amid rising geopolitical tension point to something structural, not cyclical,” Samuel Harcourt, Core Contributor at EVM layer-1 developer Sonic Labs, told Decrypt. He added that capital is “quietly repositioning” as military spending ramps up and traditional financial infrastructure bears the strain of the ongoing Middle East conflict.
A “portfolio diversifier” amid geopolitical tensionGeorge Papp, chief liquidity officer at Altura DeFi, said periods of geopolitical tension often prompt investors to seek assets outside the traditional financial system.
"The strong inflows suggest institutional allocators are viewing digital assets less as speculation and more as a portfolio diversifier during global uncertainty," Papp told Decrypt.
He added that the U.S. continues to dominate flows because spot ETF products have become the main gateway for institutional exposure.
"When risk appetite returns or macro narratives shift, the first place that capital tends to express itself is through those ETF channels," Papp said.
Analysts say the resurgence in crypto ETF demand reflects a mix of geopolitical risk, investors reassessing valuations following a prolonged downturn, and gradual regulatory progress in the sector.
"Digital assets have come back into that conversation pretty naturally as non‑sovereign stores of value," Motz said.
Short‑Bitcoin products also saw inflows of $8.1 million, indicating that investor sentiment remains somewhat divided on the asset’s near‑term outlook.
Harcourt argued that the short-Bitcoin inflows reflect a “healthy polarisation,” with “bears watching macro headwinds and timing risk,” while bulls are “anchored to the structural demand story.”
