Digital asset investment products bounced back strongly last week, recording $2.48 billion in inflows. This surge has pushed total inflows for August to $4.37 billion and boosted year-to-date totals to $35.5 billion.
However, despite the influx of capital, the overall assets under management (AUM) for digital investment products dropped 10% to $219 billion. The decline followed Friday’s outflows, which came shortly after the release of the Core PCE (Personal Consumption Expenditures) data. This economic report disappointed markets and dampened expectations of a Federal Reserve rate cut in September.
United States Leads Inflows; Global Participation Grows
The United States led the charge, contributing a massive $2.29 billion in inflows for the week. Other countries showing strong interest included Switzerland, Germany, and Canada, all posting healthy gains.
Analysts believe the Friday dip was likely driven by profit-taking rather than a broader shift in sentiment. Overall, the week’s trends reflect a renewed global confidence in digital assets, despite macroeconomic uncertainties.
Ethereum Outshines Bitcoin; Altcoins Gain Momentum
One of the most notable developments last week was Ethereum’s strong performance. The second-largest cryptocurrency by market cap saw $1.4 billion in inflows, significantly outperforming Bitcoin, which brought in $748 million.
Looking at August as a whole, Ethereum has attracted $3.95 billion in inflows, while Bitcoin has faced $301 million in outflows — a notable contrast that highlights shifting investor preferences.
Other altcoins also saw positive momentum. Solana and XRP both experienced increased interest, fueled by growing optimism around potential U.S. ETF approvals. This suggests that investors are expanding their focus beyond just Bitcoin and Ethereum, anticipating broader institutional adoption of the crypto asset class.
