Friday saw outflows from both spot Bitcoin and Ether ETFs, occurring as the Federal Reserve unveiled new inflation figures, revealing upward price pressures potentially linked to trade policies enacted during Donald Trump’s presidency.
Information sourced from SoSoValue indicates that Ether (ETH) ETFs experienced a net outflow of $164.64 million. This reverses a streak of five consecutive days of inflows, which had collectively added more than $1.5 billion to the asset class.
Bitcoin (BTC) ETFs also showed a downturn, reporting $126.64 million in net outflows. This marks their first day of losses since August 22nd. The total assets managed under Ethereum ETFs now stand at $28.58 billion, while Bitcoin ETFs hold $139.95 billion.
Fidelity’s FBTC faced the largest single-day outflow among Bitcoin ETFs, with $66.2 million leaving the fund. ARK Invest and 21Shares’ ARKB followed, registering a net withdrawal of $72.07 million, while Grayscale’s GBTC saw $15.3 million in exits. Only a few funds saw minor inflows, including BlackRock’s IBIT, which gained $24.63 million, and WisdomTree’s BTCW, which added $2.3 million.
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Inflation Data Exceeds Expectations
These outflows occurred concurrently with the release of the core Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred measure of inflation. This showed a 2.9% annualized increase in July, the highest figure since February.
The report, aligning with predictions, surfaces amid escalating evidence suggesting that the tariffs implemented under Trump’s administration are exerting pressure on core prices by elevating the costs of imported goods, according to reports.
The Trump White House had earlier implemented a standard 10% tariff on all imports while also targeting additional categories with retaliatory levies. While energy prices aided in restraining broader inflation, services saw a 3.6% year-over-year increase.
Even with the rise in inflation, financial markets still anticipate a potential interest rate cut by the Federal Reserve during their upcoming meeting, particularly if employment data indicates further deterioration, CNBC reports indicate.
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Ether ETFs Show Strength Driven by Corporate Interest
Since being introduced in July of 2024, Ether spot ETFs have been steadily gaining momentum, with net inflows climbing 44% during August, climbing from $9.5 billion to $13.7 billion. Analysts attribute this expansion to a resurgence in institutional interest following a period where it lagged in performance behind Bitcoin.
Corporate treasury adoption of Ether is also growing. Companies now possess 4.4 million ETH, an asset valued at exceeding $19 billion, representing roughly 3.7% of its total supply, as reported by StrategicETHReserve.
“After a prolonged period where Ethereum’s performance lagged Bitcoin’s, coupled with weakened investor sentiment, Ethereum has recently seen a significant revival as people recognize its adoption rate and value proposition,” Sygnum chief investment officer Fabian Dori shared with Cointelegraph.
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