Crypto Funds Record $1.9B Inflow as Bitcoin, Ethereum Lead Rally

Global digital asset investment products recorded a $1.9 billion inflow last week, the highest weekly gain in 2025, according to data released by CoinShares. This brings total year-to-date inflows into crypto funds to $13.2 billion, marking a significant shift in sentiment among institutional investors.

Despite ongoing Middle East tensions, particularly the Israel-Iran conflict, the inflow trend continues, indicating growing confidence in major cryptocurrencies.

Bitcoin Attracts Majority of Capital

Bitcoin accounted for $1.3 billion of the total inflow after two consecutive weeks of outflows. Analysts attribute the rebound to its perceived safe-haven status, with investors positioning it alongside traditional assets like gold amid geopolitical uncertainty.

Small inflows into short Bitcoin products were also recorded, suggesting a minority of traders are still hedging against potential price volatility.

Ethereum Sees Best Week in Months

Ethereum investment products attracted $583 million, the highest since February. Ethereum now accounts for 14% of total crypto assets under management globally. However, a minor outflow of $2.1 million from U.S.-based Ethereum spot ETFs broke a 19-day streak of gains.

Altcoins Regain Traction

Investor interest extended beyond the top two digital currencies:

• XRP funds: +$11.8 million

• Sui (altcoin): +$3.5 million

These inflows ended multi-week losing streaks, suggesting investors are broadening exposure to the crypto market beyond Bitcoin and Ethereum.

UAE Implications: What Investors Should Watch

While the entire $1.9 billion inflow was driven by the U.S., other Western countries like Germany ($39.2M), Switzerland ($20.7M), and Canada ($12.1M) also contributed. In contrast, Hong Kong, Sweden, and Brazil saw notable capital outflows.

For UAE-based crypto investors, this shift offers key insights:

• Bitcoin and Ethereum remain dominant plays, especially in times of global instability

• Institutional interest signals long-term strength, despite short-term price swings

• Western capital trends may foreshadow similar moves in emerging markets like the UAE

• Altcoin exposure is gaining traction and may present additional portfolio growth opportunities

As the UAE continues to regulate and adopt blockchain-based financial services, local investors may benefit from reassessing their crypto exposure, particularly through regulated platforms now available in the Emirates.