Data shows that crypto assets outperform traditional risk assets such as stocks during the crisis. For example, the two digital currencies have gained 14.5% and 13.5%, respectively, since the outbreak of the Russian-Ukrainian conflict on February 24, while the S&P 500 has gained only 3.2% during that period.
On the other hand, in the long run, the returns of cryptocurrency assets are gradually stabilizing. The Barclay Hedge Crypto Traders Index, which tracks trading by crypto asset managers, fell just 1.5 percent in February, down from 13 percent in January and 10 percent in December, according to March 14 data.
According to asset management firm CoinShares, crypto investment products and funds saw $163 million in institutional inflows in the first two weeks ended March 4, while inflows into blockchain stocks totaled about $15.6 million. Meanwhile, bond funds saw net outflows of $7.8 billion in the week ended March 9, while real estate funds saw outflows of $770 million over the same period, according to fund analytics firm Lipper.