Digital asset investment products experienced a remarkable influx of $2.17 billion last week, marking the highest weekly total since October 2025. Early optimism about the market was evident, but it waned after a dramatic $378 million outflow hit the market on Friday due to geopolitical tensions over Greenland, threats of new tariffs, and the news that Kevin Hassett, a dove in policy circles, is likely to remain in his position instead of being appointed as the next US Federal Reserve Chair.

Early Influx of Crypto Investments

According to the CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin led the charge with inflows totaling $1.55 billion over the past week. Other prominent tokens also drew interest despite regulatory uncertainties, including Ethereum and XRP, which attracted inflows of $496 million and $69.5 million, respectively. The proposals laid out in the US Senate Banking Committee’s CLARITY Act, which could restrict certain yield offerings on stablecoins, did not deter investors.

Several altcoins gained traction as well, particularly XRP, which logged gains of $45.5 million. Other notable gainers included Sui with $5.7 million, Lido with $3.7 million, and Hedera with $2.6 million. Meanwhile, multi-asset products faced a decline of $12.5 million.

Global investor interest was robust, particularly in the US, which attracted $2.05 billion in fresh investment. Additional gains were seen in Germany ($63.9 million) and Switzerland ($41.6 million), but some regions, like Sweden, experienced losses exceeding $4 million, and Brazil witnessed an exit of $1 million.

Caution in the Broader Market

Market analysts reflect that the reversal in inflows indicates a growing risk-off sentiment across digital assets. Petr Kozyakov, Co-Founder and CEO of Mercury, noted that the correction suggests “optimism was on thin ice.” Following this incident, it appears investors are leaning towards traditional, safer assets.

“The biggest cryptocurrency stands at $93,000, with the recent downturn in Asian trading erasing most gains from the year. This pullback reflects a broader risk-off mentality across cryptocurrency markets, paralleling losses in global stock markets. Meanwhile, gold and silver are becoming increasingly attractive to investors seeking security.”