Spot Bitcoin and Ether exchange funds saw withdrawals on Friday after the Federal Reserve released higher readings of inflation. Analysts closely watched the data because President Donald Trump’s import tariff policies partly fueled continued price pressures.
SoSoValue statistics show that Ether ETFs had seen $164.64 million of net withdrawals after five consecutive days of positive inflows. Such preceding inflows had already added a total of more than $1.5 billion to Ether funds, signaling a high institutional participation rate in the first week of the month.
Bitcoin ETFs also recorded outflows of $126.64 million, marking the first negative outcome since August 22 and breaking a hot streak. Ethereum assets under management fell to $28.58 billion, and Bitcoin’s level fell to $139.95 billion, a reflection of cautious attitudes from the big market players.
Fidelity’s FBTC had the longest one-day loss of the week for the Bitcoin funds, with investors redeeming $66.2 million in the Friday session. ARK Invest and 21Shares’ ARKB followed with $72.07 million of net redemptions, and Grayscale’s GBTC lost $15.3 million. BlackRock’s IBIT gained $24.63 million and WisdomTree’s BTCW gained $2.3 million in the corresponding period.
Bitcoin Outflows Rise As Inflation Concerns Grow
The Federal Reserve published its favoured gauge of inflation, the core Personal Consumption Expenditures gauge, at a 2.9 per cent annual rate in July. That was the fastest rate since February and reflected higher prices that were mainly linked with President Trump’s tariffs on a wide range of imports.
The Trump administration imposed a ten percent floor tariff on imports and expanded duties through other reciprocal trade policies that increased the cost of imports. Although prices of energy limited the overall inflationary impact, services went up by 3.6 percent year-over-year and fueled the Federal Reserve’s concerns about price stability.
Notwithstanding higher inflation readings, markets continue to anticipate a possible rate cut in the coming Federal Reserve meeting. Commentators mention that this anticipation is largely reliant on the labor market situation, particularly in the event of job figures showing additional unwinding.
Spot ETH ETPs that went live in July 2024 used to register consistent inflows, from $9.5 billion in mid-July to $13.7 billion in mid-August. Corporate treasuries now store 4.4 million ETH worth more than $19 billion and account for roughly 3.7 percent of the overall circulating supply.
