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Digital Asset Products See Strong Rebound as Investors Rotate to Ethereum

Digital asset investment products experienced a strong rebound last week, attracting roughly $2.5 billion in new inflows, according to CoinShares. This positive turn pushed total August inflows to over $4.3 billion and year-to-date commitments above $35 billion.

The momentum was particularly strong for Ethereum, which saw $1.4 billion in fresh allocations—nearly double the $748 million that went into Bitcoin. Over the entire month of August, the trend was even more pronounced, with Ethereum funds gaining nearly $4 billion while Bitcoin products had outflows of over $300 million. Analysts believe this indicates a “tactical rotation” of investor funds away from Bitcoin and into other major cryptocurrencies.

The shift also benefited other altcoins. Solana products received $177 million, and XRP saw $134 million in inflows, likely fueled by speculation about a potential ETF. In contrast, Sui had minor outflows of $5.8 million.

Despite a late-week dip triggered by U.S. inflation data, which caused some profit-taking, most of the week’s inflows came from the U.S. ($2.3 billion). The data suggests that the recent dip was a short-term reaction rather than the beginning of a larger market reversal.

September 2025, Cryptoniteuae

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Vaibhavv Ali
Vaibhavv Ali

Vaibhavv Ali is the founder and editor of Cryptonite (cryptonite.ae), an independent digital-asset news and analysis publication with a UAE focus. He covers virtual-asset regulation — VARA, ADGM and the UAE Central Bank — alongside real-world-asset tokenization, stablecoins and agentic AI in finance. Every Cryptonite article is human-edited and its sources are linked. He is also a celebrated speaker and host.

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