Digital asset investment products rebounded last week, recording $2.48 billion in inflows, lifting total inflows for August to $4.37 billion and year-to-date inflows to $35.5 billion, according to a CoinShares report on Monday.
What Happened: Despite the inflows, total assets under management (AuM) fell 10% from recent peaks to $219 billion, driven by late-week outflows linked to Core PCE data releases.
The United States dominated last week's inflows, contributing $2.29 billion, or approximately 92% of total inflows.
Other regions also reported gains: Switzerland saw $109.4 million, Germany $69.9 million, and Canada $41.1 million.
The broad distribution across multiple regions suggests that Friday's outflows were largely profit-taking, rather than indicative of a systemic decline in digital asset demand.
Ethereum (CRYPTO: ETH) led inflows with $1.4 billion last week, compared to Bitcoin's (CRYPTO: BTC) $748 million.
For August, Ethereum accumulated $3.95 billion, while Bitcoin registered outflows of $301 million.
Solana (CRYPTO: SOL) and XRP (CRYPTO: XRP) also posted gains, with inflows of $177 million and $134 million, respectively, reflecting optimism around potential US ETF launches for these tokens.
Inflows remained positive through most of the week but turned negative on Friday after the Core PCE data release, which did not support expectations of a Federal Reserve rate cut in September.
CoinShares noted that this contributed to the overall 10% decline in AUM, despite robust inflows earlier in the week.
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Why It Matters: In a note sent to Benzinga, Konstantin Anissimov, Global CEO of Currency.com, said, “I think the speed of ETH spot ETFs outflow is as telling as its size. Just recently, in August, the same funds pulled in close to $3.9 billion. Now, it looks like investors are moving out."
He further said that some of these outflows are rotations.
Macro anxiety amid soft labour data, recession fears, pushes money back to Bitcoin ETFs, which attracted more than $250 million in inflows over the same period."
Anissimov added that Ethereum remains fundamentally strong, citing:
"So far, staking growth, DeFi activity, and network health remain strong. From my perspective, the size of this outflow is more about timing than conviction,” he further said.
While Ethereum led last week's inflows, its volatility relative to Bitcoin suggests it remains a higher-beta asset, drawing institutional attention for potential short-term rotations.
Bitcoin, viewed as a "safer" digital asset during market turbulence, recorded $250 million in inflows, offsetting some ETH outflows and reflecting risk-adjusted asset allocation among institutions.
YTD Perspective: Year-to-date, digital asset investment products have seen $35.5 billion in inflows, underscoring continued investor interest despite late-week profit-taking.
Ethereum remains the dominant token by inflow magnitude, while Bitcoin's moderate inflows indicate steady demand for lower-beta crypto assets.
The Friday outflows, linked to macroeconomic news, highlight how short-term digital asset investment activity can fluctuate in response to global economic indicators, yet the underlying trend for August and YTD inflows remains positive.
CoinShares' report emphasizes that weekly inflows were strong and geographically diverse, with US dominance, followed by meaningful participation in Europe and Canada.
The data highlights both asset-specific rotations and regional investor dynamics, offering a granular view of digital asset fund activity.
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