$2.17 Billion Floods Into Crypto as Geopolitics and Policy Fears Shake Markets

When global uncertainty rises, money looks for shelter—and last week, crypto was one of the biggest winners.

According to the latest CoinShares Digital Asset Fund Flows Report, crypto investment products attracted $2.17 billion in inflows, marking the strongest weekly inflow since October 2025. The surge came as investors reacted to a volatile mix of geopolitical tensions, renewed tariff threats, and murky policy signals.

Despite a sharp sentiment reversal late in the week, the message was clear: institutional capital is increasingly turning to digital assets during periods of macro stress.

The bulk of inflows arrived early in the week, as investors positioned themselves for instability. However, sentiment deteriorated sharply on Friday.

Two major developments triggered the shift:

These events rattled broader risk markets and sparked a rapid pullback. By week’s end, digital asset products recorded $378 million in outflows in a single day, trimming—but not erasing—the week’s gains.

Geopolitics wasn’t the only factor at play. Monetary policy uncertainty also weighed heavily on sentiment.

Markets reacted to growing expectations that Kevin Hassett, widely seen as a policy dove and a top candidate for the next US Federal Reserve Chair, is likely to remain in his current role. That prospect reduced hopes for a near-term shift in monetary policy, injecting fresh caution into already fragile markets.

As CoinShares noted:

At the asset level, Bitcoin dominated flows, pulling in a massive $1.55 billion over the week.

The scale of these inflows reinforces Bitcoin’s growing reputation as a macro hedge, particularly during periods of:

For many investors, Bitcoin is no longer just a speculative asset—it’s becoming a strategic allocation in turbulent times.

Bitcoin wasn’t alone. Ethereum posted a standout performance with $496 million in inflows, while Solana attracted $45.5 million.

Notably, these gains came despite regulatory headwinds, including proposals under the US Senate Banking Committee’s CLARITY Act, which could restrict stablecoin issuers from offering yield.

Yet investors looked past short-term regulatory noise, signaling confidence in the long-term adoption of smart contract platforms.

The inflows weren’t limited to large-cap assets. Several altcoins saw meaningful interest:

This broad participation suggests that risk appetite improved earlier in the week, even though macro headlines later slowed momentum.

Beyond tokens, blockchain-related equities had a strong showing, attracting $72.6 million in inflows.

This highlights a key trend: investors aren’t just betting on spot crypto prices—they’re allocating capital across the entire digital asset ecosystem, from infrastructure to applications.

Just one week earlier, crypto funds recorded $454 million in outflows, underscoring how quickly sentiment can flip. But the sheer size of last week’s inflows sends a powerful message.

As geopolitical risks rise, trade tensions resurface, and policy signals remain unclear, digital assets are increasingly viewed as part of a diversified risk strategy—not just a speculative bet.

In an uncertain world, crypto is no longer sitting on the sidelines. It’s moving firmly into the global macro conversation.