Investors pulled money from Bitcoin and Ether ETFs after new inflation data showed rising price pressure.
- Ether ETFs lost $164.64 million after five days of growth
- Bitcoin ETFs recorded $126.64 million in one-day losses
- New inflation data may influence future Federal Reserve decisions
Ethereum ETFs Face Major Withdrawal
Ether spot exchange-traded funds (ETFs) saw a large net outflow of $164.64 million on Friday. This shift came after five days of gains that had added over $1.5 billion to the funds. Total assets under management for Ether dropped to $28.58 billion. Although the sector has seen strong performance in recent months, this downturn came at a key time for the market.
Bitcoin ETFs Also See Red
Bitcoin ETFs had a similar result, losing $126.64 million in daily net outflows. It marked the first loss for Bitcoin ETFs since August 22. Fidelity’s FBTC led the decline with $66.2 million exiting the fund. ARK Invest and 21Shares’ ARKB lost $72.07 million, and Grayscale’s GBTC saw $15.3 million leave the fund.
Only a few funds posted gains. BlackRock’s IBIT added $24.63 million, and WisdomTree’s BTCW gained $2.3 million.
Inflation Data Raises Concerns
The ETF outflows happened as the U.S. Federal Reserve released its core Personal Consumption Expenditures (PCE) index. The report showed inflation rose by 2.9% annually in July—its highest since February. This index is a key tool the Fed uses to measure inflation. Rising import costs, likely influenced by new tariffs introduced under President Trump, have added to the pressure.
Service costs rose 3.6% year-over-year, while energy helped limit broader inflation. Still, many investors are watching the Fed closely. A rate cut could be possible if labor market data also weakens.
Ether ETFs Remain Strong Overall
Despite the pullback, Ether ETFs have had a strong run overall. Since July 2024, Ether ETFs saw a 44% rise in net inflows during August, growing from $9.5 billion to $13.7 billion. Experts link the rise to growing institutional interest and new adoption by corporate treasuries.
Businesses now hold around 4.4 million ETH, worth over $19 billion, or around 3.7% of Ethereum’s total supply. This support could help the market recover from short-term losses.
Source: cointelegraph.com
