The latest CoinShares report shows that inflows into crypto asset funds have surpassed US$2 billion in the past week, marking the strongest weekly inflow since October 2025.
This is happening as investors seek exposure to the crypto asset market amid rising geopolitical tensions, threats of new tariffs, and increasing policy uncertainty.
How Policy Uncertainty Drives Crypto Asset Inflows to US$2.17 Billion
This increase in inflows occurred despite a sharp reversal in sentiment over the weekend. According to the latest Digital Asset Fund Flows Weekly report, inflows were concentrated at the beginning of the week before ultimately turning negative on Friday.
This change occurred after a diplomatic escalation regarding Greenland and additional threats concerning trade tariffs, which broadly pressured risk sentiment.
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At the weekend, digital asset products recorded an outflow of US$378 million in one day, partially reversing the gains made earlier.
Policy uncertainty also contributed to the weakening sentiment. Market participants reacted to news that Kevin Hassett, known for his dovish stance on policy and a leading candidate for the next Chair of The Fed, is likely to remain in his current position.
The prospect has lowered expectations for monetary policy changes in the near future, adding caution to a market that is already anxious.
“…sentiment weakened on Friday amid geopolitical tensions, tariff threats, and policy uncertainties,” read a quote in the report.
Bitcoin dominates the fund flows based on asset class, attracting US$1.55 billion throughout that week. The large inflow indicates that investors still see Bitcoin as a primary macro hedge, especially during geopolitical tensions and policy uncertainties.
Ethereum also recorded strong performance with an inflow of US$496 million, while Solana attracted US$45.5 million.
This gain occurred despite regulatory pressures. One such proposal comes from the U.S. Senate Banking Committee through the CLARITY Act, which could limit stablecoin issuers in offering yields.
The sustained interest in smart contract platforms indicates that investors are beginning to look towards long-term adoption. Certainly, it is not just fixated on short-term regulatory issues.
Altcoins also participated in the rally. XRP stood out with an inflow of US$69.5 million. Sui, LIDO, and Hedera each recorded US$5.7 million, US$3.7 million, and US$2.6 million.
The breadth of inflows into large- and mid-cap tokens indicates that risk appetite is starting to improve at the beginning of the week, although macroeconomic news subsequently limited that pace.
In addition to tokens, shares of blockchain companies also recorded a very strong week with an inflow of US$72.6 million. This performance indicates that investor interest in the digital asset ecosystem is expanding, not just limited to spot crypto assets.
Last week's crypto fund flows demonstrated how quickly sentiment can change. This is in stark contrast to the outflow of US$454 million that occurred in the week ending January 10.
The magnitude of this weekly inflow indicates that geopolitical instability, trade, and unclear policy signals are at play. This further pushes funds to flow into digital assets as part of a risk diversification strategy.
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