Bitcoin and Ether ETFs Experience Outflows
On Friday, both Bitcoin and Ether ETFs saw outflows as the Federal Reserve published crucial inflation data, revealing that price pressures are rising under President Donald Trump’s trade policies.
As per SoSoValue data, Ether (ETH) ETFs experienced a net outflow of $164.64 million, reversing a streak of five consecutive days of inflows that had contributed over $1.5 billion to the asset class.
Similarly, Bitcoin (BTC) ETFs recorded a negative trend with $126.64 million in net outflows, marking their first daily loss since August 22. Total assets under management dropped to $28.58 billion for Ethereum and $139.95 billion for Bitcoin.
Fidelity’s FBTC saw the most significant single-day outflow at $66.2 million among Bitcoin ETFs. This was followed by ARK Invest and 21Shares’ ARKB, which recorded a net withdrawal of $72.07 million, while Grayscale’s GBTC noted an exit of $15.3 million. A few funds did manage to post minor inflows, with BlackRock’s IBIT gaining $24.63 million and WisdomTree’s BTCW adding $2.3 million.
The outflows coincided with the release of the Fed’s preferred inflation measure, the core Personal Consumption Expenditures (PCE) index, which showed a 2.9% annualized increase in July, the highest rate since February.
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This report, which aligned with forecasts, arrived amid increasing evidence that Trump’s tariff policies are escalating pressure on core prices by inflating import costs, as noted by CNBC.
The Trump administration has imposed a standard 10% tariff on all imports and has targeted additional categories through reciprocal duties. While energy prices helped to keep overall inflation in check, the services sector surged by 3.6% year-over-year.
In spite of the inflation uptick, the market continues to anticipate the possibility of a Federal Reserve rate cut at the next meeting, particularly if labor market data indicates further signs of weakness, according to the CNBC report.
Growth of Ether Spot ETFs
Since their introduction in July 2024, Ether spot ETFs have steadily gained traction, with net inflows increasing by 44% in August, rising from $9.5 billion to $13.7 billion. Analysts credit this growth to a resurgence in institutional interest after a period of underperformance compared to Bitcoin.
Corporate treasury adoption of Ether is also on the rise. Companies now hold 4.4 million ETH, valued at over $19 billion, which constitutes approximately 3.7% of the total supply, as reported by StrategicETHReserve.
“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,” remarked Sygnum chief investment officer Fabian Dori in an interview.
