The post Bitcoin and Ethereum ETFs Hit by $290M Outflows After Inflation Shock appeared first on Coinpedia Fintech News Spot Bitcoin and Ethereum ETFs closed the week on a weak note, as investors pulled funds after the Federal Reserve reported an uptick in core inflation. According to SoSoValue, Ethereum ETFs saw $164.64 million in net outflows on Friday, ending a five-day streak of strong inflows that had brought in more than $1.5 billion. Meanwhile, …The post Bitcoin and Ethereum ETFs Hit by $290M Outflows After Inflation Shock appeared first on Coinpedia Fintech News Spot Bitcoin and Ethereum ETFs closed the week on a weak note, as investors pulled funds after the Federal Reserve reported an uptick in core inflation. According to SoSoValue, Ethereum ETFs saw $164.64 million in net outflows on Friday, ending a five-day streak of strong inflows that had brought in more than $1.5 billion. Meanwhile, …

Bitcoin and Ethereum ETFs Hit by $290M Outflows After Inflation Shock

Bitcoin and Ethereum ETFs

The post Bitcoin and Ethereum ETFs Hit by $290M Outflows After Inflation Shock appeared first on Coinpedia Fintech News

Spot Bitcoin and Ethereum ETFs closed the week on a weak note, as investors pulled funds after the Federal Reserve reported an uptick in core inflation.

According to SoSoValue, Ethereum ETFs saw $164.64 million in net outflows on Friday, ending a five-day streak of strong inflows that had brought in more than $1.5 billion.

Meanwhile, Bitcoin ETFs posted $126.64 million in outflows, marking their first daily decline since August 22. Assets under management now stand at $28.58 billion for Ethereum and $139.95 billion for Bitcoin.

Big Players Drive Withdrawals From Bitcoin and Ethereum ETFs

Fidelity’s FBTC led the losses with $66.2 million in withdrawals, while ARK Invest and 21Shares’ ARKB recorded $72.07 million in outflows. Grayscale’s GBTC saw $15.3 million exit the fund.

A few issuers managed gains. BlackRock’s IBIT added $24.63 million and WisdomTree’s BTCW brought in $2.3 million, but these inflows were too small to offset the broader trend of withdrawals.

Tariffs Push Inflation Higher

The outflows came alongside new inflation data showing rising price pressures linked to President Trump’s trade policies.

The Fed’s preferred inflation gauge, the core PCE index, rose 2.9% year-on-year in July, the highest level since February. Analysts tied the increase to tariffs that raised import costs, with Trump imposing a 10% baseline tariff on all imports along with targeted reciprocal duties.

While falling energy prices capped headline inflation, services jumped 3.6% over the same period.

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Markets Still Expect Rate Cuts

Despite the hotter inflation report, markets are still pricing in a possible Fed rate cut at the next meeting, especially if labor market data shows further weakness.

Investors are debating whether Trump’s tighter trade policies will push the central bank to act more aggressively to balance growth and inflation.

Ethereum ETFs Show Long-Term Growth Potential

Friday’s sell-off comes after months of strong demand for Ethereum ETFs. Since launching in July 2024, assets have grown from $9.5 billion to $13.7 billion by August.

Institutional adoption has also accelerated. Corporate treasuries now hold more than 4.4 million ETH, worth over $19 billion, highlighting Ethereum’s growing role in mainstream finance despite short-term volatility.

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FAQs

Why did Bitcoin and Ethereum ETFs see outflows?

Investors withdrew funds after the Fed reported rising core inflation (2.9% in July), driven by tariffs increasing import costs and service prices.

How much flowed out of crypto ETFs?

Ethereum ETFs had $164.64M in outflows, ending a 5-day streak. Bitcoin ETFs saw $126.64M exit, their first daily decline since August 22.

Are rate cuts still expected despite inflation?

Yes, markets still price in a potential Fed rate cut if labor data weakens, balancing trade policy impacts on growth and inflation.

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