Global Digital Asset Investment Products Inflows Hit Multi-Month High Despite Geopolitical Tension

Digital asset investment products saw $2.17 billion in inflows, the largest weekly total since October 2025. Momentum reversed sharply Friday with $378 million exiting amid Greenland tensions and US tariff threats, CoinShares data shows.

According to a CoinShares report on January 19, digital asset investment products recorded US$2.17 billion in net inflows over the prior week, marking the largest weekly total since Oct. 10, 2025.

The report showed inflows were concentrated earlier in the week before reversing on Friday, when US$378 million exited products amid diplomatic escalation involving Greenland, renewed U.S. tariff threats, and policy-related uncertainty in Washington.

The diplomatic standoff over Greenland intensified Monday as former President Donald Trump reaffirmed his threat to impose escalating tariffs on eight NATO allies, including the United Kingdom and Germany, unless a deal is reached for the United States to purchase the semi-autonomous Danish territory, according to a BBC report.

Asset-Level Flows and Regional Breakdown for Digital Asset Investment Products

Sentiment was also pressured by domestic policy considerations, according to CoinShares Head of Research James Butterfill. In the January 19 report, Butterfill wrote that flows were weighed down by suggestions that Kevin Hassett, a leading contender for the next U.S. Federal Reserve chair and a policy dove, is likely to remain in his current role rather than move to the central bank.

At the asset level, bitcoin-linked investment products accounted for US$1.55 billion of the week’s inflows, representing more than 70% of total allocations, according to CoinShares’ data. U.S. spot bitcoin exchange-traded products made up US$1.4 billion of that figure, placing the week among the strongest periods for bitcoin fund demand since October 2025.

Short-bitcoin products, which allow investors to bet against the price, saw minor outflows of $700,000. The flows into bitcoin products occurred before the late-week geopolitical shift.

Meanwhile, Ethereum products gathered $496 million in inflows, while Solana funds attracted $45.5 million. This demand emerged alongside legislative proposals from the U.S. Senate Banking Committee that could restrict stablecoins from offering yield.

At the same time, a range of other digital assets saw inflow, while XRP products drew $69.5 million. Funds for Sui, Lido, and Hedera saw inflows of $5.7 million, $3.7 million, and $2.6 million respectively, CoinShares said in the report.

Blockchain-related equities also posted a strong performance, attracting US$72.6 million in net inflows. CoinShares categorized the activity as part of broader investor engagement with listed companies tied to the digital asset sector, rather than token-based exposure alone.

Regionally, inflows were concentrated in the United States, where investment products added US$2.05 billion over the week. European products also recorded gains, with Germany seeing US$63.9 million in inflows and Switzerland adding US$41.6 million. Canada and the Netherlands followed with US$12.3 million and US$6.0 million, respectively.

The $2.17 billion weekly inflow establishes a clear peak in institutional product demand not seen in over a year. The subsequent $378 million reversal, triggered by an unprecedented geopolitical dispute, demonstrates the market’s continued sensitivity to macro shocks. The standoff over Greenland remains unresolved.

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