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Global cryptocurrency investment products returned to positive growth last week, recording net inflows of $2.48 billion following a period of withdrawals, as reported by CoinShares in their weekly update.
This renewed activity increased August’s total net inflows to $4.37 billion, elevating year-to-date investments to $35.5 billion.
James Butterfill, the head of research at CoinShares, remarked that inflows remained robust until late in the week. He indicated that sentiment changed on Friday after the release of Core PCE inflation data, which did not support expectations for a rate cut by the Federal Reserve in September.
This letdown, coupled with a decrease in price momentum, impacted the overall market and caused total assets under management to decline by 10% to $219 billion.
Ethereum surpasses Bitcoin
Ethereum continued to attract the majority of allocations during the reporting period, as investors seemed captivated by the second-largest digital asset by market capitalization.
According to CoinShares, funds focused on ETH garnered $1.4 billion in new investments last week, nearly twice the amount recorded by Bitcoin, which stood at $748 million.
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Flows for the month further emphasize the disparity, with Ethereum receiving $3.95 billion in new inflows last month, while Bitcoin experienced $301 million in net outflows.
CoinShares suggested that this trend indicates a tactical reallocation, as investors shift their exposure from Bitcoin to other significant assets.
Additionally, other altcoins seem to be reaping the benefits of this reallocation.
CoinShares reported that Solana products attracted $177 million, while XRP secured $134 million, driven by increasing anticipation of spot ETF approvals. Together, these two assets have contributed nearly $700 million in inflows for August.
Conversely, Cardano and Chainlink received smaller allocations of $5.2 million and $3.6 million, while Sui experienced outflows of $5.8 million.
Regionally, US-based cryptocurrency investment products continue to account for the majority of investments.
Data from CoinShares indicated that US funds captured $2.29 billion of last week’s inflows, with investors from Switzerland, Germany, and Canada following at $109.4 million, $69.9 million, and $41.1 million, respectively.
In light of this, CoinShares proposed that the widespread distribution of inflows suggests that Friday’s decline was likely a result of short-term profit-taking rather than the onset of a more significant retracement.
The post US leads $2.48 billion crypto inflow as Ethereum outshines Bitcoin in August appeared first on CryptoSlate.
