Bitcoin ETF Inflows Rise as Altcoin Fund Demand Dries Up

Bitcoin ETFs listed in the US attracted $986.9 million in the week through September 4, data from SoSoValue shows. Over the same period, inflows into products tracking Ethereum, Solana, XRP, and Hyperliquid declined by 73% to 96%.

The weekly inflow for Bitcoin funds rose 6.7%. In contrast, the four other major product categories reversed course following a strong performance the previous week.

Altcoin Funds Erase a Week of Inflows

The situation was reversed in the week ending August 28. Bitcoin ETFs gathered $924.5 million during that period, about half of the $1.92 billion they had taken in the prior week.

Solana-related products surged 443% to $153.9 million in that week. XRP funds increased 178% to $110.5 million, and Hyperliquid funds attracted $56.9 million.

Those inflows disappeared over five trading days. Solana ETFs drew $6.2 million, XRP funds took in $19 million, and Hyperliquid funds collected $12.3 million.

None of the five products saw net outflows. The change indicates a reduction in buying activity, not a withdrawal of investor capital.

Trading volumes declined across all assets, including Bitcoin. Bitcoin fund turnover fell to $14.5 billion from almost $19 billion, and Ethereum turnover dropped to $4.1 billion.

Prices Did Not Reflect Inflow Trends

Spot prices remained range-bound for all five assets. Bitcoin posted a 2.58% gain over the five trading days ending September 4.

Ethereum advanced 1.09%, XRP increased 3.02%, and Hyperliquid rose 5.76%.

Solana lagged behind with a 0.18% gain. Its fund assets edged down to $1.41 billion from $1.43 billion over the same period.

Bitcoin opened on Friday at its highest level since May 12. The price action came after Federal Reserve Governor Christopher Waller commented on the upcoming inflation data.

The August jobs report was released on the last day of the flow week. Payrolls increased by 162,000, compared to expectations of about 53,000, and traders boosted their expectations for a Federal Reserve interest rate hike this month.

That data contrasts with the dovish message that attracted capital into Bitcoin funds on Thursday. The August inflation report, scheduled for September 11, will test whether the inflows can be sustained.