Crypto ETFs Surge As Iran Opens Strait Of Hormuz

Key Insights:

• Crypto ETFs registered a noteworthy surge in daily inflows on Friday.
• Bitcoin clips $78,000 after breaking above key consolidation zone resistance level.
• Rally delivers the second biggest short liquidation event of Bitcoin year-to-date.

Crypto ETFs just had one of the best weeks in months. At the center of this outcome was the easing geopolitical tensions particularly around the Strait of Hormuz and the crypto market appears to be responding to related developments.

For instance, crypto ETFs registered significant inflows on Friday after Iran announced that the Strait of Hormuz was open. Bitcoin ETF inflows alone amounted to $663.9 million on Friday. This was the highest daily inflows observed since mid-January.

Crypto ETFS: Bitcoin ETFs in Focus as Geopolitical Tensions Cool | Source: Coinglass

The net weekly Bitcoin ETF flows came in just shy of $1 billion. Ethereum crypto ETFs also recorded healthy inflows during the week.

For context, Ethereum ETFs brought in $127.4 million on Friday, which was its highest daily inflow not just during the week but also since the start of April.

Ethereum ETFs maintained a steady streak of inflows this past week, with the total tally for the week coming in at $275.4 million.

Even Solana and XRP crypto ETFs maintained net inflows during the last 7 days. This observation suggests that institutional players were shrugging off the FUD and positioning themselves for recovery.

Crypto ETFs & Their Impact on the Broader Market

There is no doubt that the declining FUD and improving market confidence reflects the macro picture. More so, the tensions around the Strait of Hormuz.

The higher inflows on Friday signaled that institutions were responding to reports that the Strait of Hormuz was opened.

The crypto ETFs, as well as the broader digital assets space, have been experiencing lower sell pressure in the last 7 days. As a result, prices ticked higher.

For example, Bitcoin price briefly pushed above $78,000 on Friday. Demand from the crypto ETFs provided the extra boost that Bitcoin price needed to continue lending favor to the bulls.

As a result, BTC price pulled off a 7% plus weekly upside. More importantly, this rally allowed it to break above the resistance of its consolidation zone for the first time since early February.

Bitcoin Price Benefits from Healthy Crypto ETF Inflows | Source: TradingView

The healthy crypto ETFs inflows suggest that Bitcoin could easily reclaim the $80,000 price level within the next few days. However, this will depend on whether the geopolitical standoffs will cool even further, paving the way for more sentiment improvement.

Bitcoin Experiences Heavy Short Liquidation

Bitcoin price push to $78,000 caught the bears off-guard. BTC short liquidations clocked over $344 million on Friday.

This was the second-highest daily short liquidation event it has experienced since the start of 2026.

Bitcoin Short Liquidations | Source: CoinGlass

These liquidations, amid the crypto ETFs news, signaled that many traders expected BTC price to retrace after retesting the upper limit of its consolidation zone. Ethereum also experienced a surge in liquidations to $142 million on Friday.

The bearish expectations might be justified especially now that Iran has reportedly announced another closure of the Strait of Hormuz.

These geopolitical events are making it clear just how the current geopolitical situation is affecting investor sentiment.

In summary, investors, especially the institutional class or the crypto ETFs watchers, have been eager to tap into a relief rally. Crypto traders should thus keep track of institutional movements.

On the other hand, the chances of a retracement remained high especially with the current back and forth between Iran and the US.

This assessment also suggests that the crypto market could enter a stronger recovery phase if the US-Iran situation cools further.

The post Crypto ETFs Surge As Iran Opens Strait Of Hormuz appeared first on The Coin Republic.