Crypto funds see record streak: What UAE investors can learn from latest $1.9b inflow

Dubai: Global crypto investment funds continued their winning streak for the ninth straight week, drawing $1.9 billion in new inflows, according to CoinShares’ latest report. This marks the highest year-to-date total ever for digital asset funds — $13.2 billion so far in 2024.

For UAE-based crypto investors, this signals growing institutional confidence, especially in Bitcoin and Ethereum, even as geopolitical tensions — particularly in the Middle East — remain unresolved.

After two weeks of small outflows, Bitcoin roared back with $1.3 billion in new investments. Despite the Israel-Iran conflict still creating market uncertainty, investors appear to be looking at Bitcoin as a safe-haven asset, similar to how gold is used during times of crisis.

There was also a small inflow into short Bitcoin products — tools used by traders who bet on falling prices — but the overall market sentiment still clearly favoured long-term Bitcoin holding.

Ethereum-related funds saw $583 million in inflows last week — the highest weekly inflow in four months. So far this year, Ethereum investment products have attracted $2 billion, making up 14% of all assets under management (AuM).

However, interest in Ethereum spot ETFs in the US showed some signs of cooling, with a minor outflow of $2.1 million recorded on June 13, breaking a 19-day streak of gains.

It’s not just Bitcoin and Ethereum in the spotlight:

These figures show that investors are exploring broader crypto exposure, not just focusing on the top two coins.

Despite unrest in parts of the Middle East, the US accounted for the entire $1.9 billion inflow last week. Other Western nations also saw positive activity:

Meanwhile, Hong Kong led outflows with $56.8 million exiting funds, followed by Sweden ($16.7m) and Brazil ($8.5m) — indicating a possible regional shift in sentiment.

For retail and institutional investors in the UAE, this global momentum may offer several takeaways:

With global crypto sentiment improving, UAE-based investors — many of whom are already exposed to regulated crypto platforms and services — may find this an opportune time to review or rebalance their portfolios.