- U.S. spot Bitcoin and Ether ETFs saw significant outflows following the release of new inflation data.
- Ether ETFs recorded a net outflow of $165 million, ending a five-day streak of inflows.
- Bitcoin ETFs posted $127 million in net outflows, their first daily loss in over a week.
- The Federal Reserve’s preferred inflation gauge, core PCE, rose 2.9% annually, driven in part by higher import costs under President Trump’s tariff policy.
- Institutional interest in Ether remains strong, with corporate treasuries now holding 4.4 million ETH, or $19 billion.
Spot Bitcoin and Ether exchange-traded funds (ETFs) in the U.S. experienced notable outflows on Friday, coinciding with the release of higher-than-expected inflation figures from the Federal Reserve. The shift comes as key price pressure data points to mounting inflation, with analysts linking the trend to President Donald Trump’s trade policies.
According to SoSoValue, Ether (ETH) ETFs saw a net outflow of about $165 million, breaking a streak of five consecutive days of inflows that had added over $1.5 billion. Bitcoin (BTC) ETFs also posted net outflows of $127 million, marking their first daily loss since August 22. The total assets under management now stand at $28.6 billion for Ethereum and nearly $140 billion for Bitcoin.
Fidelity’s FBTC ETF had the biggest single-day outflow among Bitcoin funds at $66 million. Ark Invest and 21Shares’ ARKB reported a $72 million withdrawal, while Grayscale’s GBTC saw $15 million exit. Some funds still attracted investment, with BlackRock’s IBIT gaining $25 million and WisdomTree’s BTCW seeing $2 million in inflows.
The outflows followed the release of the core Personal Consumption Expenditures (PCE) index, the Federal Reserve’s main inflation measure. The index rose 2.9% year-over-year in July, its highest growth since February. According to a CNBC report, the Trump administration’s 10% tariff on all imports and targeted reciprocal duties have contributed to higher import costs, raising inflation. Service prices increased 3.6% year-over-year, while broader inflation was limited by stable energy prices.
Despite recent ETF outflows, Ether spot products have seen strong demand since launching in July 2024. Net inflows for August rose by 44%, from $9.5 billion to $13.7 billion. StrategicETHReserve reports that corporate treasury holdings of Ether have reached 4.4 million ETH—worth over $19 billion—equivalent to 3.7% of the total ETH supply.
Sygnum’s chief investment officer, Fabian Dori, noted, “After an extended period of underperformance relative to Bitcoin and a souring investor sentiment, Ethereum has recently experienced a significant revival in the recognition of both its adoption rate and value proposition.”
Market expectations remain that the Federal Reserve could cut rates if labor data weakens further, despite the uptick in inflation.
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