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The latest report from CoinShares shows that cryptocurrency fund flows exceeded $2 billion last week, recording the strongest weekly inflows since October 2025.
This comes at a time when investors are looking to explore digital currency markets amid rising geopolitical tensions, renewed tariff threats, and growing political uncertainty.
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How political uncertainty led to $2.17 billion in cryptocurrency flows
This increase in flows came despite a sharp decline in sentiment at the end of the week. According to the latest weekly report of digital asset fund inflows, flows were concentrated earlier in the week before turning negative on Friday.
This transformation came later Diplomatic escalation linked to Greenland The new threats to impose additional tariffs on trade, which weigh heavily on the broader risk sentiment.
At the end of the week, digital asset products saw inflows of $378 million in one day, partially offsetting earlier gains.
Policy uncertainty also contributed to the drop in sentiment. Market participants reacted to suggestions that Kevin Hassett, widely seen as a political dove and a leading candidate for the next US Federal Reserve Board, He is likely to remain in his current position.
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That possibility has dampened expectations for an imminent change in monetary policy, adding another layer of caution to already jittery markets.
“… Sentiment dipped on Friday amid geopolitical tensions, tariff threats and political uncertainty,” As stated In the report.
Bitcoin dominated asset-level inflows, attracting $1.55 billion during the week. The volume of inflows indicates that investors are still looking at Bitcoin As the main macro hedgeespecially during periods of geopolitical pressure and political uncertainty.
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Smart contracts and altcoin platforms attract flows despite regulatory headwinds
Ethereum also had a strong performance, registering $496 million in flows, while Solana attracted $45.5 million.
These gains came despite regulatory headwinds, including proposals under the U.S. Senate Banking Committee’s CLARITY Act that may… Limit the issuance of stablecoins by offering a return.
The continued appetite for smart contract platforms suggests that investors are looking beyond the short-term regulatory noise and positioning themselves for longer-term adoption trends.
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Altcoins also participated in the growth. XRP stood out with a flow of $69.5 million, while Sui, LIDO and Hedera recorded $5.7 million, $3.7 million and $2.6 million, respectively.
The breadth of inflows in large and mid-cap tokens suggests an improvement in risk appetite earlier in the week, even with… Reduce momentum later in macro stocks.
Beyond tokens, blockchain stocks had a remarkably strong week, attracting $72.6 million in inflows. The performance highlights the continued investor interest in the broader ecosystem of digital assets, and not just in immediate exposure to cryptocurrencies.
Last week’s cryptocurrency fund inflows reflect how quickly sentiment has changed, given… Outflows of $454 million That saw the week ending January 10.
The volume of weekly flows suggests that geopolitical instability, trade uncertainty and uncertain political signals are increasingly pushing capital towards digital assets as part of a diversified risk strategy.
