{"id":869168,"date":"2025-08-30T21:12:22","date_gmt":"2025-08-31T02:12:22","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/08\/30\/bitcoin-and-ethereum-etfs-hit-by-290m-outflows-after-inflation-shock\/"},"modified":"2025-08-30T21:12:22","modified_gmt":"2025-08-31T02:12:22","slug":"bitcoin-and-ethereum-etfs-hit-by-290m-outflows-after-inflation-shock","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/08\/30\/bitcoin-and-ethereum-etfs-hit-by-290m-outflows-after-inflation-shock\/","title":{"rendered":"Bitcoin and Ethereum ETFs Hit by $290M Outflows After Inflation Shock"},"content":{"rendered":"
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\"Bitcoin<\/figure>\n<\/div>\n
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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.<\/p>\n

According to SoSoValue<\/a>, 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.<\/p>\n

Meanwhile, Bitcoin ETFs<\/a> 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.<\/p>\n

Big Players Drive Withdrawals From Bitcoin and Ethereum ETFs<\/h2>\n

Fidelity\u2019s FBTC led the losses with $66.2 million in withdrawals, while ARK Invest and 21Shares\u2019 ARKB recorded $72.07 million in outflows. Grayscale\u2019s GBTC saw $15.3 million exit the fund.<\/p>\n

A few issuers managed gains. BlackRock\u2019s IBIT added $24.63 million and WisdomTree\u2019s BTCW brought in $2.3 million, but these inflows were too small to offset the broader trend of withdrawals.<\/p>\n

Tariffs Push Inflation Higher<\/h2>\n

The outflows came alongside new inflation data showing rising price pressures linked to President Trump\u2019s trade policies<\/a>.<\/p>\n

The Fed\u2019s 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.<\/p>\n

While falling energy prices capped headline inflation, services jumped 3.6% over the same period.<\/p>\n

Markets Still Expect Rate Cuts<\/h2>\n

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

Investors are debating whether Trump\u2019s tighter trade policies will push the central bank to act more aggressively to balance growth and inflation.<\/p>\n

Ethereum ETFs Show Long-Term Growth Potential<\/h2>\n

Friday\u2019s 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.<\/p>\n

Institutional adoption has also accelerated<\/a>. Corporate treasuries now hold more than 4.4 million ETH, worth over $19 billion, highlighting Ethereum\u2019s growing role in mainstream finance despite short-term volatility.<\/p>\n

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Never Miss a Beat in the Crypto World!<\/h5>\n

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.<\/p>\n<\/div>\n

FAQs<\/h2>\n
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Why did Bitcoin and Ethereum ETFs see outflows?<\/strong><\/strong><\/p>\n

Investors withdrew funds after the Fed reported rising core inflation (2.9% in July), driven by tariffs increasing import costs and service prices.<\/p>\n<\/div>\n

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How much flowed out of crypto ETFs?<\/strong><\/strong><\/p>\n

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.<\/p>\n<\/div>\n

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Are rate cuts still expected despite inflation?<\/strong><\/strong><\/p>\n

Yes, markets still price in a potential Fed rate cut if labor data weakens, balancing trade policy impacts on growth and inflation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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\n Debashree Patra<\/p>\n","protected":false},"excerpt":{"rendered":"

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<\/p>\n","protected":false},"author":1,"featured_media":869169,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4041,25740],"tags":[],"class_list":{"0":"post-869168","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"category-ethereum"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/869168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=869168"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/869168\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/869169"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=869168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=869168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=869168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}