Investment products related to digital assets saw net inflows amounting to $619 million in the past week, as per CoinShares. This figure reflects a generally positive response to the ongoing crisis in Iran, despite a late-week market retreat that saw $829 million exit on Thursday and Friday.

Geopolitical Tensions Impact Market Sentiment

Despite a rocky week, where initial optimism on Monday led to $1.44 billion in inflows, investor confidence fluctuated due to several geopolitical factors, notably rising oil prices that followed escalating tensions involving Iran.

Bitcoin Leads the Way

The latest Digital Asset Fund Flows Weekly Report indicates that Bitcoin attracted the most investor interest, with $521 million directed towards related products. However, this was somewhat tempered by $11.4 million in new capital for short-Bitcoin products, suggesting a divided sentiment among investors.

Among alternative cryptocurrencies, information showed Ethereum with $88.5 million in inflows, while Solana followed with $14.6 million. Conversely, XRP faced outflows of $30.3 million from related investment products.

US Investors Drive Market Activity

Most investor activity was seen in the United States, where $646 million was added to digital asset products. However, Europe experienced outflows of $23.8 million, while Asia and Canada recorded $2.2 million and $3.6 million in withdrawals, respectively.

Preparing for Volatility

Despite the geopolitical backdrop, Bitcoin’s price displayed resilience amid rising oil prices, which surpassed $115. This situation raised concerns over potential supply disruptions and wider instability in the Middle East, impacting global equities. Notably, the VIX index exceeded 29.

QCP Capital noted that Bitcoin has been performing relatively well against other risk assets, with traders indicating lower concerns about sharp declines compared to previous market shocks. While some protective strategies remain in place, market flows hint at expectations of continued volatility.