Crypto Funds See $2.17B Inflows Amid Geopolitical Tensions
Digital asset investment products saw a significant surge in weekly inflows despite rising geopolitical tensions. With a $2.17 billion flow, the crypto funds have seen the highest figure since October 2025.
Bitcoin led the charge, while Ethereum, Solana, and a wide range of altcoins attracted strong investor interest. This signals continued confidence in the broader crypto market.
However, the crypto market sentiment shifted today, posing significant losses. Trump tariff tensions and speculations around the Fed rate cut and Chair Powell’s probe have significantly impacted the industry, with the market now in the red zone.
Crypto Funds Drive Strong Weekly Inflows
According toCoinShares’ weekly report, Bitcoin dominates crypto funds’ weekly inflows, drawing $1.55 billion. This indicates that Bitcoin inflows remained strong despite macroeconomic volatility and ongoing regulatory developments.
Ethereum and Solana also showed resilience. Ethereum funds attracted $496 million while Solana products pulled in $45.5 million. These continued inflows indicate that investors remain confident in the long-term potential of smart contract platforms, despite the evolving regulatory space.
Beyond these major cryptocurrencies, multiple altcoin crypto funds have also seen positive inflows. XRP led the altcoin segment with $69.5 million, followed by Sui with $5.7 million, Lido with $3.7 million, and Hedera with $2.6 million flows.
Amid Global Tensions Surge
The global crypto market is now facing a series of challenges, including geopolitical tensions, trade disputes, and increasing uncertainty around upcoming Fed rate decisions. The uncertainty surrounding the much-awaited passage of the CALRITY Act also adds to the rising tensions.
Trump Tariffs
Donald Trump recently announced his plans to gradually raise tariffs on several European nations that oppose his push to acquire Greenland. On Saturday, he shared a post claiming that he would impose 10% tariffs on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, effective from February 1. He added that he will further raise this to 25% from June 1.
The US has been reportedly attempting to acquire Greenland for more than 150 years. Trump claimed that several previous presidents of the country have attempted the same. He stated,
The United States has been trying to do this transaction for over 150 years. Many Presidents have tried, and for good reason, but Denmark has always refused.”
Fed Rate Cut
The CME FedWatch Tool data reveals increasing odds of the Federal Reserve maintaining its current interest rates in January and March. While the possibility of a Fed rate hold in January is at 95%, the odds in March are at 75%. This indicates that the central bank is less likely to lower its interest rates soon.
CLARITY Act
The much-anticipated CLARITY Act is facing further delays before its possible passage. The crypto bill had already cleared the House, sparking speculations of its imminent passage. However, momentum quickly faded after several major industry players like Coinbase withdrew their support for the bill. The repeated delays for the markup hearing have also sparked growing uncertainty.
Amid these developments, the market has faced a significant downturn, despite positive crypto funds weekly flows. Currently, the market is down by 2.4%, plummeting to $3.15 trillion. Bitcoin, Ethereum, XRP, and other major tokens are also facing this downtrend, marking significant losses.
