Even as geopolitical tensions are on the rise, crypto ETFs are still seeing strong inflows.

Last week, money kept flowing into crypto ETFs, which tells us that big investors are still interested. Bitcoin brought in the most, at $786.31 million. Ethereum followed with $187.07 million. Even XRP saw a smaller amount come in, around $11.75 million. But on the flip side, Solana actually had $5.62 million leave.

This suggests investors are sticking to assets they know and trust more. Bitcoin, for instance, remains the top pick for institutions, drawing the most attention. Ethereum, too, is consistently in demand. While the money moving into XRP might mean some targeted buying, Solana seeing outflows probably indicates less interest in those riskier, smaller cryptocurrencies.

Meanwhile, global tensions are increasing. After peace talks broke down, the situation between the U.S. and Iran got worse, even leading to plans for a naval blockade in the Strait of Hormuz. That strait is crucial for worldwide oil shipments, so any problems there could cause major disruptions.

Oil prices have already shot up sharply because people are worried about supply. When oil gets more expensive, it pushes up inflation, which means central banks probably won't be lowering interest rates anytime soon. This, in turn, makes it a harder time for riskier investments like cryptocurrencies.

Despite all this uncertainty, the money still flowing into ETFs tells us that institutions aren't pulling out of the market entirely. Instead, they're simply being more careful about where they put their money. Most of that money is heading towards Bitcoin and Ethereum, while other, smaller assets are getting less attention.

All in all, the market isn't exactly jumping into risky investments. It seems more like a careful strategy, with investors leaning towards safer, larger cryptocurrencies and steering clear of riskier bets.

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