Global crypto investment products swung back into positive territory last week, recording $2.48 billion in net inflows after a period of withdrawals, according to CoinShares‘ weekly report.

The renewed momentum lifted August’s total net inflows to $4.37 billion, pushing year-to-date commitments to $35.5 billion.

James Butterfill, head of research at CoinShares, noted that inflows remained strong until late in the week. According to him, sentiment shifted on Friday after the release of Core PCE inflation data, which failed to reinforce expectations for a September rate cut by the Federal Reserve.

That disappointment, combined with declining price momentum, weighed on the broader market and drove total assets under management down 10% to $219 billion.

Ethereum outpaces Bitcoin

Ethereum continued to draw the bulk of allocations during the reporting period as investors appeared enamored with the second-largest digital asset by market capitalization.

According to CoinShares, ETH-focused funds attracted $1.4 billion in new capital last week, nearly double the figure posted by Bitcoin at $748 million.

Month-to-date flows highlight the gap even more as Ethereum gained $3.95 billion in fresh flows last month, while Bitcoin registered $301 million in net outflows.

CoinShares suggested that the figure signals a tactical reallocation as investors shift exposure away from Bitcoin into other major assets.

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Author: Oluwapelumi Adejumo