Despite ongoing uncertainties in the digital asset market, cryptocurrency-related exchange-traded funds (ETFs) have regained upward momentum. Data shows that since the escalation of tensions between the U.S. and Iran, total assets in crypto ETFs have surged by approximately $12 billion, indicating a quiet return of funds to the digital asset space.
According to reports, these funds attracted $1.06 billion in inflows last week, marking the strongest weekly inflow since mid-January. This is the third consecutive week of net inflows, bringing the total for this period to over $2.8 billion. This buying frenzy has nearly offset the $3.9 billion that flowed out of the market in the previous five weeks.
Bitcoin ETFs Attract $2.2 Billion in Three Weeks
Data indicates that Bitcoin ETFs played a major role, adding $793 million in funds, accounting for about 75% of last week's total inflows. Over the past three weeks, Bitcoin-related products have attracted $2.2 billion in funds. The latest data shows that on March 18, nearly $130 million flowed out of related funds. Among them, Fidelity's FBTC reported over $103 million in outflows, while Grayscale's GBTC saw $18.8 million withdrawn.
Ethereum ETFs also performed well, attracting $315 million in inflows over the past three weeks. Nevertheless, the year-to-date fund flow for Ethereum products remains nearly flat, reflecting differing demand across assets.
On March 18, Ethereum ETFs experienced outflows exceeding $55 million. Fidelity's FETH fund saw $37.11 million flow out that day, while Grayscale's ETHE fund had $8.8 million withdrawn.
Crypto Market Momentum Accelerates:
- Last week, crypto funds recorded +$1.06 billion in inflows, the highest since the third week of January.
- This marks the third consecutive week of net inflows, totaling +$2.8 billion.
Following the U.S. Federal Open Market Committee (FOMC) policy meeting, the total market capitalization of cryptocurrencies fell by nearly 4%, currently around $2.44 trillion. Its 24-hour trading volume hovers around $110.5 billion. Bitcoin's price dropped over 4% in the past day, falling from above $74,000 to $71,000.
Ethereum was also affected, declining 6% in the past 24 hours, with an average trading price of $2,198 at the time of writing.
Federal Reserve Holds Rates Steady
Data shows that since the outbreak of the U.S.-Iran conflict, total managed assets in crypto ETFs have grown by 9.4%, reaching approximately $140 billion. Most of the funds reportedly came from the U.S., accounting for about 96% of last week's total inflows. Additionally, Canada, Switzerland, and Hong Kong contributed some funds. Notably, Germany saw its first weekly outflows this year.
This has sparked a viewpoint that investors are returning to the cryptocurrency space despite geopolitical pressures. However, the fund flow data also suggests another possibility: investors may simply be returning due to the pressures of war.
BlackRock's IBIT fund led the inflows last week, attracting over $600 million, accounting for about 78% of all Bitcoin ETF inflows. This indicates that the demand is not broadly from retail investors, but rather concentrated...