Global digital asset investment products recorded a $1.9 billion inflow last week — the largest weekly gain in 2025 — according to data released by CoinShares. This brings total year-to-date crypto fund inflows in 2025 to $13.2 billion, signaling a major shift in sentiment among institutional investors.
Despite ongoing Middle East tensions, particularly the Israel-Iran conflict, the upward trend in inflows continues. It highlights a rising level of trust among investors in top-tier digital assets.
Bitcoin Attracts Majority of Capital
Bitcoin accounted for $1.3 billion of the total inflow, bouncing back after two straight weeks of outflows. Analysts attribute the rebound to Bitcoin’s perception as a safe-haven asset, with investors positioning it similarly to gold during periods of geopolitical uncertainty.
There were also small inflows into short Bitcoin products, suggesting that a minority of traders are still hedging against potential price volatility.
Ethereum Sees Best Week in Months
Ethereum investment products brought in $583 million, marking its strongest weekly inflow since February. Ethereum now represents 14% of total crypto assets under management globally. However, a small $2.1 million outflow from U.S.-based Ethereum spot ETFs ended a 19-day streak of inflows.
Altcoins Regain Traction
Investor interest is also broadening beyond Bitcoin and Ethereum:
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XRP funds saw $11.8 million in inflows
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Sui, an emerging altcoin, recorded $3.5 million
These inflows ended multi-week losing streaks, suggesting that investors are beginning to diversify their crypto exposure across the broader market.
UAE Implications: What Investors Should Watch
While the entire $1.9 billion in inflows originated from the U.S., other Western countries contributed significantly:
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Germany: $39.2 million
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Switzerland: $20.7 million
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Canada: $12.1 million
In contrast, Hong Kong, Sweden, and Brazil experienced notable capital outflows.
Key insights for UAE-based crypto investors:
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Bitcoin and Ethereum remain dominant, especially in times of global instability
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Institutional interest indicates long-term strength despite short-term market swings
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Western capital trends could signal similar movements in emerging markets like the UAE
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Altcoin exposure is regaining attention and may offer additional portfolio growth opportunities
As the UAE continues regulating and adopting blockchain-based financial services, local investors may benefit from reassessing their crypto exposure, particularly through regulated platforms now available in the Emirates.
