Crypto products return to inflows as markets show resilience amid geopolitical tensions
- Crypto products recorded $224 million in inflows last week, led by XRP with $119 million.
- Bitcoin recorded modest inflows of $107.3 million last week, while Monday's data shows $471 million in fresh inflows.
- BTC ETFs' net inflows reached $1.32 billion in March, marking their first positive month since October.
Digital asset products saw modest inflows of $224 million last week, resuming a positive trend after seeing outflows in the prior week, according to CoinShares' report on Tuesday.
Regionally, the inflows were dominated by Switzerland, which netted $157 million, followed by Germany and the United States with $27.7 million and $27.5 million, respectively.
Among crypto assets, XRP products saw the largest weekly inflows, totaling $119 million, the largest since mid-December. The shift to the top spot highlights the effects of geopolitical tensions on larger assets like Bitcoin (BTC) and Ethereum (ETH), which often rely on US investors for larger inflows. Regardless, Bitcoin products were not far behind, attracting $107 million.
Momentum accelerated on Monday as US spot BTC exchange-traded funds (ETFs) pulled in $471 million. The latest move builds on their performance in March, when the products recorded $1.32 billion in net inflows, marking their first positive month since October.
Investor interest rises amid LTH supply growth
Broader market behavior indicates that investors are increasingly discounting the immediacy of escalation risks between Donald Trump and Iranian officials, with crude prices dropping below last week's levels and equity futures holding steady, noted QCP analysts in a report on Monday.
On-chain data further supports the case for renewed investor conviction. According to CryptoQuant analyst Darkfost, the supply held by long-term holders (LTHs) has begun to trend upward again, signaling a shift toward holding.
The data shows that more Bitcoin is now aging into long-term holder status than is being distributed. Approximately 308,000 BTC have been added to the LTH supply after the metric rebounded from negative territory in late November. This shift reflects a broader change in investor behavior, even as Bitcoin continues to trade within a relatively tight range.
Darkfost cited that the metric is UTXO-based, meaning the increase does not necessarily indicate active accumulation. Instead, it captures tokens that have remained unspent for over six months, transitioning from short-term to long-term holder status.
The trend suggests that investors are opting to hold through volatility rather than exit positions, a move that has historically preceded positive price movements.
CryptoQuant analyst Gaah further noted that active Bitcoin addresses have dropped to their lowest levels in 2026, marking an eight-year low and highlighting a sharp decline in network participation.
He stated that such periods of low volatility often create favorable conditions for institutional players to accumulate without affecting price. The decline in activity suggests that short-term participants have largely exited the market, noted Gaah.
Bitcoin trades near $69,000 on Tuesday, up 0.5% over the past 24 hours as of writing.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to
