Crypto Funds Extend Three-Week Run With $1B Inflows Despite Geopolitical Stress

Global crypto funds attracted a remarkable $1 billion in inflows last week, marking their third consecutive week of positive net flows and best performance in two months, while underscoring resilience amid geopolitical challenges.

Notably, crypto Exchange-Traded Products (ETPs) had a five-week run of negative net flows from January 19 to February 20 amid market weakness and broader negative sentiment. The investment products had cumulative outflows of $4 billion, registering their worst performance since the October 10 crash.

However, US investors’ renewed demand for digital asset investment products since the end of February, particularly Bitcoin Exchange-Traded Funds (ETFs), has reduced the prior one-month outflows streak, bringing the three-week run of inflows to $2.62 billion.

Regionally, 96% of the inflows originated from the US, with Canada and Switzerland following with $19.4 million and $10.4 million, respectively. Hong Kong also attracted $23.1 million in inflows, marking the best performance since August 2025. In contrast, Germany recorded outflows of $17.1 million, its first negative net flows in 2026, according to CoinShares’ data.

Funds based on the flagship cryptocurrency showed the strongest performance this week, with $793 million in inflows. This accounts for 75% of total inflows, bringing BTC’s three-week inflows to $2.2 billion.

The report noted that short Bitcoin investment products also attracted $8.1 million in inflows last week, highlighting that market opinion remains somewhat polarized.

The expert emphasized that 50% drawdowns “are a walk in the park for long-time BTC investors,” but observed that newer ETF investors also appear unfazed by the recent market volatility.

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas also shared a similar perspective on the performance of spot Bitcoin ETFs, calling the investment products’ resilience “absurd” amid the market conditions.

“If this pattern persists, it would be a late-quarter plot twist, given crypto’s underdog status and its familiar habit of correlating with traditional assets mostly on the way down,” the report stated.