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.
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.
Meanwhile, other altcoins also appear to be benefiting from this reallocation.
Across regions, US-based crypto investment products continue to drive the bulk of investments.
Data from CoinShares showed that the US funds saw $2.29 billion of last week’s flows, while investors in Switzerland, Germany, and Canada followed at $109.4 million, $69.9 million, and $41.1 million, respectively.
Considering this, CoinShares posited that the broad distribution of inflows indicates Friday’s dip was likely short-term profit-taking rather than the start of a deeper retracement.
