BTC, ETH ETFs hemorrhage $291M triggered by US inflation data

Spot Bitcoin and Ether ETFs saw steep outflows on Friday as fresh ￰0￱ numbers rattled investor ￰1￱ outflows amounted to $291.28 million, a striking reversal of sentiment following weeks of ￰2￱ ETFs led outflows, losing $164.64 million, SoSoValue ￰3￱ snapped a stretch of five straight sessions of inflows that had added over $1.5 billion to the asset ￰4￱ ETFs also saw outflows, losing $126.64 million in their first daily decline since ￰5￱ drawdown drove a decline in assets under management (AUM) across the ￰6￱ ETF assets under management dipped to $28.58 billion, and Bitcoin ETF AUM to $139.95 ￰7￱ from individual funds underscored the magnitude of the exodus.

Fidelity’s FBTC topped the outflows list, with $66.2 ￰8￱ ARKB from ARK Invest and 21Shares was next up, with outflows of $72.07 ￰9￱ by Grayscale registered an outflow of $15.3 ￰10￱ all funds bled capital. BlackRock’s IBIT took in an estimated $24.63 million in inflows. WisdomTree’s BTCW inched to $2.3 million, showing that some investors were still in the mood to take advantage of the ￰11￱ wary as Fed inflation gauge lifts dollar The heavy outflows in the Bitcoin and Ether ETFs came as the ￰12￱ new inflation data that caught investors’ ￰13￱ central bank’s favored measure of underlying inflation, the core Personal Consumption Expenditures (PCE) index, increased 2.9% year-over-year in July, the fastest pace since ￰14￱ figure aligned with economists’ estimates but reinforced that inflation pressures are proving ￰15￱ figure also comes as the Fed is pressured to follow through on long-awaited rate ￰16￱ closer at the report, energy prices offered some relief by partially offsetting overall increases.

However, the services sector told a different ￰17￱ costs surged 3.6% year-over-year, reflecting sustained demand and rising ￰18￱ warn that this type of inflation is usually harder to ￰19￱ the pressure are rising import costs associated with President Donald Trump’s ￰20￱ administration put in place across-the-board 10% tariffs and added duties on specific ￰21￱ meant to support domestic output, these steps have also raised the cost of a wide range of everyday products for American companies and ￰22￱ investors, the report came at an opportune ￰23￱ have been betting the Fed will cut interest rates in September to help keep growth ￰24￱ with inflation remaining stubborn, traders aren’t so sure.

A cooler job market or softening job data in the weeks ahead could push the Fed toward easing ￰25￱ the flip side, stubbornly high prices could delay action and prolong tighter financial ￰26￱ warn that the Federal Reserve is walking a ￰27￱ strategist told MarketWatch that the central bank’s biggest concern, with inflation trending upward, is cutting rates too early and triggering another price ￰28￱ strategist added that the Fed did not want to keep rates elevated for too long, which could choke off economic ￰29￱ adoption is still showing momentum Despite market fluctuations, outflows from Ether ETFs have remained limited since their July 2024 ￰30￱ surged 44% month-on-month, rising from $9.5 billion to $13.7 billion, driven primarily by institutional investors and corporate ￰31￱ now collectively hold around 4.4 million ETH, valued at over $19 billion—approximately 3.7% of total issuance, according to ￰32￱ growing adoption has bolstered confidence in Ethereum’s role as a long-term store of value and a key asset for corporate balance ￰33￱ Dori, chief investment officer at Swiss crypto bank Sygnum, said we are finally seeing the adoption and recognition of Ethereum’s value proposition after prolonged underperformance compared to Bitcoin and weak investor ￰34￱ Difference Wire helps crypto brands break through and dominate headlines fast