Bullish! Crypto ETF Market Adds $12B Despite Ongoing Iran-US Standoff

Crypto-linked exchange-traded funds (ETFs) recorded a sharp rise in assets under management, adding about $12 billion during a period of heightened tension between the United States and Iran. Total AUM climbed 9.4% to $140 billion, reflecting steady demand for digital asset exposure despite global uncertainty.

The upward trend is also visible in recent flow data. According to figures shared by market commentator The Kobeissi Letter, crypto funds attracted $1.06 billion in inflows last week. This marks the strongest weekly figure since mid-January.

Bitcoin ETFs See $2.2B Inflows

Notably, last week’s inflows extended a three-week streak of positive flows that now totals more than $2.8 billion. This has offset most of the earlier five-week outflows.

Bitcoin-focused ETFs accounted for the majority of recent inflows, drawing in $793 million during the past week alone. Over the last three weeks, these products have attracted about $2.2 billion in assets, indicating continued preference for bitcoin exposure among institutional investors.

BlackRock’s iShares Bitcoin Trust led inflows with over $600 million in a single week and now holds more than 784,000 BTC. Ethereum-based ETFs recorded smaller inflows of $315 million over three weeks, while their net flows for the year remain close to unchanged.

U.S. Institutions Lead Crypto ETF Inflows

Analysts attribute the recent crypto ETF inflows mainly to institutional activity, with the United States accounting for about 96% of last week’s total. The pattern suggests a shift in capital allocation rather than widespread retail participation, as large players adjust positions under macroeconomic pressure.

Ongoing geopolitical tensions and expectations around interest rate policy appear to be shaping these movements in capital. Despite short-term volatility, crypto ETFs continue to attract steady flows, indicating their expanding role within diversified financial portfolios.

However, recent data indicate short-term pressure despite the broader inflow trend. Intermittent outflows were recorded on March 18 across major ETF products, with Bitcoin ETFs seeing nearly $164 million exit. Ethereum ETFs lost over $55 million during the same period.

The weakness also extended to the wider crypto market. Total capitalization fell around 4% to $2.44 trillion during the downturn. Bitcoin dropped from above $74,000 to near $71,000, while Ethereum declined about 6% to trade close to $2,198.