Crypto Fund Inflows Surge to $2.17 Billion as Investors Seek Hedge Amid Geopolitical Tensions

2 hour ago 8 sources positive

Key takeaways:

  • Friday's $378M outflow signals fragile sentiment despite strong weekly inflows, suggesting macro-driven volatility remains a key risk.
  • Bitcoin's 71% dominance of inflows reinforces its status as the primary crypto hedge, potentially limiting altcoin upside during macro stress.
  • Strong inflows into blockchain equities alongside crypto products indicate institutional interest is broadening beyond direct token exposure.

The cryptocurrency investment sector witnessed its strongest weekly inflows since October 2025, with a total of $2.17 billion flowing into digital asset products for the week ending January 19, 2026, according to data from CoinShares. This surge pushed total assets under management (AUM) for crypto funds above $193 billion for the first time since early November 2025.

The massive inflows were driven by investors seeking exposure to crypto markets as a hedge against rising global macro risks. These risks included escalating geopolitical tensions linked to Greenland, renewed threats of additional trade tariffs, and mounting policy uncertainty. The sentiment, however, shifted sharply later in the week, with a single day (Friday) recording $378 million in outflows, partially offsetting earlier gains. CoinShares' Head of Research, James Butterfill, attributed this late-week reversal to the geopolitical situation and reduced expectations for a near-term shift in U.S. monetary policy.

Bitcoin dominated the asset-level flows, attracting $1.55 billion—over 71% of the total weekly inflow. This underscores Bitcoin's continued perception as the primary macro hedge during periods of stress. Ethereum (ETH) also posted a strong performance with $496 million in inflows, while Solana (SOL) attracted $45.5 million. These gains occurred despite regulatory headwinds, including proposals under the U.S. Senate Banking Committee's CLARITY Act that could limit yield offerings from stablecoin issuers.

Altcoins participated broadly in the rally earlier in the week. XRP saw inflows of $69.5 million, while Sui (SUI), Lido (LIDO), and Hedera (HBAR) recorded $5.7 million, $3.7 million, and $2.6 million, respectively. Beyond tokens, blockchain equities attracted $72.6 million in inflows, highlighting sustained investor interest across the broader digital asset ecosystem.

On the issuer front, BlackRock led with $1.3 billion in inflows to its iShares ETFs, followed by Grayscale ($257 million) and Fidelity ($229 million). Geographically, the United States was the dominant region, contributing $2 billion of the global total, while Sweden and Brazil saw minor outflows. The only segments to experience outflows were short Bitcoin products ($8.6 million) and multi-asset crypto funds ($32 million).

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