Ethereum Surges Past Bitcoin While US Anchors $2.48B Weekly Crypto Rally

The cryptocurrency market bounced back with vigor, recording $2.48 billion in fresh capital inflows for the week, marking a significant turnaround from earlier withdrawal pressures. This rebound pushed August’s cumulative inflows to $4.37 billion, bringing year-to-date flows to an impressive $35.5 billion across all investment products, per CoinShares’ latest analysis.

However, momentum stumbled heading into the weekend. Market sentiment deteriorated on Friday following the release of Core PCE inflation data that disappointed expectations for a Federal Reserve rate cut in September. The combination of hawkish economic signals and weakening price action triggered a 10% contraction in total assets under management, which fell to $219 billion.

The Ethereum Advantage

While Bitcoin attracted $748 million last week, Ethereum dominated capital allocation by securing $1.4 billion—nearly double its larger rival. This disparity becomes even more pronounced when examining the full month: Ethereum accumulated $3.95 billion in August inflows against Bitcoin’s $301 million in outflows.

The pattern suggests investors are executing a strategic asset rotation, moving exposure from Bitcoin into alternative cryptocurrencies. This tactical pivot extends beyond Ethereum. Solana captured $177 million in flows, while XRP drew $134 million, energized by mounting speculation around spot ETF applications. Together, these two assets generated approximately $700 million in August inflows.

Other layer-1 tokens showed mixed performance. Cardano and Chainlink gathered relatively modest allocations of $5.2 million and $3.6 million respectively, while Sui experienced $5.8 million in outflows.

Geographic Leadership

US-denominated crypto investment products continue to lead globally, commanding $2.29 billion of the week’s inflows. International participation remained secondary, with Switzerland recording $109.4 million, Germany $69.9 million, and Canada $41.1 million in flows.

The broad geographic dispersion of capital inflows, anchored by strong US demand, indicates that Friday’s pullback likely represents tactical profit-taking rather than a structural market reversal. Investors appear to be repositioning ahead of potential monetary policy shifts, with Ethereum’s outperformance reflecting growing institutional confidence in the asset’s utility and ecosystem maturity.