Bitcoin and Ether ETFs See Outflows as Inflation Pressures Mount

Spot Bitcoin and Ether ETFs registered significant outflows on Friday, coinciding with the release of fresh U.S. inflation data. The Federal Reserve’s preferred measure, the core Personal Consumption Expenditures (PCE) index, showed that price pressures are climbing higher, raising concerns among investors navigating the effects of President Donald Trump’s trade policies. According to data from SoSoValue, Ether ETFs experienced a sharp net outflow of $164.64 million, breaking a five-day streak of inflows that had brought in over $1.5 billion. Bitcoin ETFs also turned negative, recording $126.64 million in withdrawals — their first daily loss since August 22. Following the selloff, total assets under management stood at $28.58 billion for Ethereum and $139.95 billion for Bitcoin. Outflows Reverse Momentum The redemptions were led by major players. Fidelity’s FBTC posted the steepest single-day outflow among Bitcoin ETFs with $66.2 million withdrawn. ARK Invest and 21Shares’ ARKB followed with $72.07 million in net exits, while Grayscale’s GBTC shed $15.3 million. Only a handful of funds managed modest gains, including BlackRock’s IBIT, which attracted $24.63 million, and WisdomTree’s BTCW, which saw $2.3 million in inflows. The moves came as the July PCE index showed a 2.9% annualized rise, the fastest pace since February. While the reading matched forecasts, it underscored the impact of Trump’s tariff strategy , which includes a 10% baseline tax on all imports alongside targeted reciprocal duties. Analysts noted that while lower energy prices helped contain headline inflation, service costs rose 3.6% year-over-year, fueling worries about stickier underlying price growth. Ether ETFs Maintain Longer-Term Momentum Despite Friday’s setback, Ether ETFs remain in strong demand . Since their debut in July 2024, they have attracted steady inflows, with August alone seeing a 44% increase, lifting assets from $9.5 billion to $13.7 billion. Analysts attribute the growth to renewed institutional appetite for Ethereum after a period of underperformance relative to Bitcoin. Corporate treasuries are also emerging as a significant source of demand. StrategicETHReserve reported that businesses now collectively hold 4.4 million ETH, valued at more than $19 billion — around 3.7% of the total supply. This trend reflects Ethereum’s growing role as a strategic asset for companies looking to diversify beyond Bitcoin. Even with the latest market turbulence, expectations of a potential Fed rate cut at the next meeting remain, particularly if labor market data shows further signs of weakness. For now, ETF flows suggest that investors are taking a cautious stance amid heightened inflation concerns. The post Bitcoin and Ether ETFs See Outflows as Inflation Pressures Mount appeared first on TheCoinrise.com .