Institutional investors directed $37.8 million into Bitcoin and Ethereum ETFs amid escalating US-Iran tensions, according to Crypto Briefing. The inflows mark a notable uptick in interest during a period of geopolitical uncertainty.
The move suggests shifting perceptions of digital assets as potential safe-haven investments, traditionally reserved for gold or government bonds. Investors may be hedging against traditional market volatility triggered by the conflict.
Crypto Briefing reported that the inflows were split between Bitcoin and Ethereum products, though exact allocations were not specified. The timing aligns with rising oil prices and stock market fluctuations tied to Middle East developments.
Analysts caution that crypto markets remain highly volatile, with sudden reversals possible if diplomatic breakthroughs occur. Regulatory uncertainty around ETFs could also temper long-term inflows.
Some experts argue that crypto's correlation with risk assets undermines its safe-haven narrative, pointing to past drawdowns during market stress.