The cryptocurrency market is facing risk pressure as the Russia-Ukraine conflict continues to escalate. Over the past week, Bitcoin spot ETFs have recorded outflows for the first time since mid-April, indicating a decline in demand from institutional investors.
Market Situation: War Increases Risk-Averse Sentiment
On Sunday, Ukraine launched its largest long-range offensive since the start of the war, using 117 drones to attack four Russian air bases, destroying about 40 fighter jets. Ukrainian President Volodymyr Zelensky said the covert operation dubbed "Spider Web" had paralyzed 34% of Russia's strategic cruise missile forces. Russia has called these attacks "terrorist acts," according to the BBC.
Although peace negotiations between the two countries are expected to resume on Monday in Istanbul, analysts do not expect this process to end the conflict in the short term. Instead, military escalation may continue to put pressure on risk assets such as cryptocurrencies.
Bitcoin ETF Witnesses Outflow of Funds
According to data from SoSoValue, Bitcoin spot ETFs recorded a capital outflow of $157.40 million over the past week — the first time since mid-April. Although this figure is not as severe as the capital withdrawal in February, it remains a concerning signal if the trend continues in the coming weeks. Institutional demand for Bitcoin is clearly weakening amid geopolitical instability and a shift towards safe-haven assets like gold (XAU).
Ethereum Opposite Bitcoin, Attracts Strong Capital Flow
While Bitcoin is struggling, Ethereum is attracting the attention of investors. Ethereum ETF funds recorded an inflow of 285.84 million USD last week — the highest level since mid-February and has maintained three consecutive weeks of growth since mid-May. If this trend continues, the price of Ethereum could rebound strongly in the near future.
Business Development: Contrary to Expectations
Despite the weak Bitcoin ETF situation, Japanese investment company Metaplanet is still actively accumulating assets by purchasing an additional 1,088 BTC on Monday, raising its total Bitcoin holdings to 8,888 BTC. This is a notable move that reflects long-term confidence in digital assets.
In contrast, shareholders of Meta (, formerly Facebook), have rejected the proposal to integrate Bitcoin into the company's balance sheet — highlighting the caution of some major tech corporations towards digital assets at this time.
Summary
The cryptocurrency market is entering a sensitive phase as institutional capital flows show signs of weakening, especially with Bitcoin. Political tensions and global uncertainty have led investors to look to safer assets. However, Ethereum is emerging as a bright spot with positive ETF capital flows. In the near term, this trend could lead to a significant divergence between digital asset classes.
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The Wave of Capital Outflow from ETF Begins — Bitcoin Fluctuates Amid Rising Russia-Ukraine Tensions
The cryptocurrency market is facing risk pressure as the Russia-Ukraine conflict continues to escalate. Over the past week, Bitcoin spot ETFs have recorded outflows for the first time since mid-April, indicating a decline in demand from institutional investors. Market Situation: War Increases Risk-Averse Sentiment On Sunday, Ukraine launched its largest long-range offensive since the start of the war, using 117 drones to attack four Russian air bases, destroying about 40 fighter jets. Ukrainian President Volodymyr Zelensky said the covert operation dubbed "Spider Web" had paralyzed 34% of Russia's strategic cruise missile forces. Russia has called these attacks "terrorist acts," according to the BBC. Although peace negotiations between the two countries are expected to resume on Monday in Istanbul, analysts do not expect this process to end the conflict in the short term. Instead, military escalation may continue to put pressure on risk assets such as cryptocurrencies. Bitcoin ETF Witnesses Outflow of Funds According to data from SoSoValue, Bitcoin spot ETFs recorded a capital outflow of $157.40 million over the past week — the first time since mid-April. Although this figure is not as severe as the capital withdrawal in February, it remains a concerning signal if the trend continues in the coming weeks. Institutional demand for Bitcoin is clearly weakening amid geopolitical instability and a shift towards safe-haven assets like gold (XAU). Ethereum Opposite Bitcoin, Attracts Strong Capital Flow While Bitcoin is struggling, Ethereum is attracting the attention of investors. Ethereum ETF funds recorded an inflow of 285.84 million USD last week — the highest level since mid-February and has maintained three consecutive weeks of growth since mid-May. If this trend continues, the price of Ethereum could rebound strongly in the near future. Business Development: Contrary to Expectations Despite the weak Bitcoin ETF situation, Japanese investment company Metaplanet is still actively accumulating assets by purchasing an additional 1,088 BTC on Monday, raising its total Bitcoin holdings to 8,888 BTC. This is a notable move that reflects long-term confidence in digital assets. In contrast, shareholders of Meta (, formerly Facebook), have rejected the proposal to integrate Bitcoin into the company's balance sheet — highlighting the caution of some major tech corporations towards digital assets at this time. Summary The cryptocurrency market is entering a sensitive phase as institutional capital flows show signs of weakening, especially with Bitcoin. Political tensions and global uncertainty have led investors to look to safer assets. However, Ethereum is emerging as a bright spot with positive ETF capital flows. In the near term, this trend could lead to a significant divergence between digital asset classes.