Bitcoin ETFs Extend Inflow Streak Despite Middle East Tensions

The inflows remained strong despite the ongoing geopolitical tensions between Israel and Iran. BlackRock’s IBIT led with nearly $279 million in inflows, while Fidelity’s FBTC also posted impressive gains. Meanwhile, Ether ETFs, led by BlackRock’s ETHA, also resumed their positive momentum. In contrast, Iran’s crypto sector suffered after a pro-Israel hacking group exploited the Nobitex exchange, which caused the central bank to restrict trading hours. Telegram founder Pavel Durov, also recently warned of a societal collapse due to France’s increasing censorship and regulatory pressure. Bitcoin ETFs Thrive in Volatile Market Spot Bitcoin exchange-traded funds (ETFs) in the United States recorded $388.3 million in inflows on June 18. This was the eighth consecutive day of capital injections despite the geopolitical tension stemming from the Israel-Iran conflict. Bitcoin ETF flows (Source: Farside Investors ) According to data from Farside Investors , BlackRock’s iShares Bitcoin Trust (IBIT) led the pack with $278.9 million in inflows, followed by the Fidelity Wise Origin Bitcoin Fund (FBTC), which saw $104.4 million. The consistent demand means that there is still institutional confidence in Bitcoin, even after markets initially reacted nervously to Middle East developments. Crypto analytics platform Santiment pointed out that Bitcoin stayed resilient in the $104,000 to $105,000 range throughout the day. They mentioned that this behavior mirrors patterns that were seen in previous geopolitical events like the Russia-Ukraine war in 2022 and the Israel-Palestine conflict in late 2023, where Bitcoin initially dropped but quickly stabilized. Other ETFs also showed strength, with the Bitwise Bitcoin ETF (BITB) recording an $11.3 million inflow, while products from ARK Invest, Invesco, Franklin Templeton, Valkyrie, VanEck, and WisdomTree did not register any movement. The only major outflows came from Grayscale products. The Grayscale Bitcoin Trust ETF (GBTC) lost $16.4 million, while its lower-cost counterpart, the Grayscale Bitcoin Mini Trust, shed another $10.1 million. Still, the broader trend is still positive. Since April 17, Bitcoin ETFs recorded just eight days of net outflows, and attracted $11.2 billion in inflows. In total, more than $46.3 billion has flowed into the eleven US-based Bitcoin ETFs to date, with BlackRock’s IBIT and Fidelity’s FBTC managing $50.6 billion and $11.5 billion in assets, respectively. This includes large outflows of $23.2 billion from Grayscale’s GBTC product. Meanwhile, spot Ether ETFs in the US are also seeing increased attention. Despite a brief pause in inflows on June 13, the funds bounced back with three straight days of inflows between June 16 and 18. BlackRock’s iShares Ethereum Trust ETF (ETHA) is leading the Ether ETF market as well, and it only experienced two days without inflows since May 20. Iran Limits Crypto Exchange Hours After Pro-Israel Hack While the Middle East tensions did not slow down inflows into Bitcoin ETFs, it did impact the crypto space in Iran itself. Iran’s central bank imposed strict operating hours on domestic cryptocurrency exchanges after a major security breach at Nobitex, the country’s leading crypto trading platform. The new regulations restrict trading to between 10 am and 8 pm to try and improve oversight and manage potential future attacks during working hours. The decision was made after pro-Israel hacker group Gonjeshke Darande claimed responsibility for an exploit that drained over $100 million from Nobitex’s hot wallets across multiple cryptocurrencies including Bitcoin, Ethereum, Dogecoin, XRP, and Solana. According to Chainalysis , the stolen funds were not transferred to new wallets for profit but were instead sent to burner addresses, permanently removing them from circulation. This politically motivated attack stands out in contrast to typical financially driven exploits. Andrew Fierman, head of national security intelligence at Chainalysis, explained that Iran may be trying to assert tighter control over citizen crypto activity, particularly during a period of rising geopolitical tension and the potential for capital flight. This is not the first time Iran’s central bank intervened in the crypto market. In December, all exchanges were temporarily shut down to prevent further devaluation of the Iranian rial. Now, in the wake of the Nobitex incident and Israel’s airstrikes on Iranian territory on June 13, authorities are once again exercising tighter control over the country’s crypto infrastructure. Nobitex confirmed the breach publicly, and announced that external access to its servers had been severed. The exchange reassured its users that its reserve fund will fully cover the losses and that affected hot wallets are being moved to cold storage. However, internet disruptions and restricted server access are likely to delay the restoration of user access. (Source: Chainalysis ) Chainalysis shed some light on Nobitex’s central role in Iran’s digital asset ecosystem, with more than $11 billion in inflows. This is much larger than the next ten Iranian exchanges combined. The platform is seen as a vital link for Iranians navigating sanctions to participate in global crypto markets. However, its operations have also been connected to groups considered terrorist organizations by Western authorities, as well as sanctioned Russian exchanges like Garantex and Bitpapa. Pavel Durov Warns of Collapse in France Tensions are mounting in other parts of the world as well. Telegram founder Pavel Durov warned that France risks facing societal collapse if it continues pursuing what he describes as a misguided path of censorship and overregulation. In an interview with French publication Le Point, Durov expressed his disappointment with President Emmanuel Macron’s leadership, and stated that France is becoming “weaker and weaker” and losing its competitive edge. He explained that failing to enact necessary reforms and raising generations under restrictive ideologies could lead to extreme transformations or even collapse. This is in stark contrast with innovation-friendly environments like Dubai, which he said are attracting France’s top talent. Pavel Durov Durov’s comments are part of a broader media campaign he undertook since his arrest in France in August of 2024. That arrest drew a lot of backlash from the crypto industry and global civil rights advocates, who saw it as a threat to free speech and digital sovereignty. While the legal case is still under international scrutiny, Durov speaks out against what he sees as creeping authoritarianism under the guise of regulatory reform. (Source: X ) In the interview, Durov also made serious allegations against France’s intelligence services by claiming that their chief, Nicolas Lerner, approached him at the Hôtel de Crillon and requested the censorship of pro-conservative content ahead of Romania’s May 2025 presidential election. Durov said he refused the request as it contradicted the principles of open discourse. He also criticized the European Union’s Digital Services Act, and described it as a deceptive legislative framework that could enable widespread censorship under the pretext of consumer protection and misinformation control. Durov warned that such laws are inherently dangerous, as they could eventually be turned against those who helped enact them.

Source: Coinpaper