Spot BTC, ETH ETFs see outflows as inflation ticks up under Trump tariffs
Spot Bitcoin and Ether exchange-traded funds recorded outflows on Friday after the U.S. Federal Reserve released inflation data showing rising price pressures. According to market data, Ether ETFs experienced a net outflow of $164.64 million, reversing five straight days of inflows that had added more than $1.5 billion to the asset class. Bitcoin ETFs also turned negative, with $126.64 million in net outflows. Total assets under management stood at about $28.58 billion for Ethereum and $139.95 billion for Bitcoin.
Among individual funds, Fidelity’s FBTC posted the largest single-day outflow among Bitcoin ETFs at $66.2 million. ARK Invest and 21Shares’ ARKB recorded a combined $72.07 million withdrawal, while Grayscale’s GBTC saw $15.3 million exit. A small number of funds posted gains — BlackRock’s IBIT added roughly $24.63 million and WisdomTree’s BTCW picked up about $2.3 million.
Fed releases hotter-than-expected core inflation
The pullback in crypto ETF flows coincided with the release of the Fed’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, which showed a 2.9% annualized rise in July — the highest reading since February. Analysts linked part of the pressure on core prices to higher import costs resulting from the Trump administration’s tariff policies, which include a baseline 10% tariff on a wide range of imports and additional duties on targeted categories. While energy prices helped keep broader inflation more contained, services inflation rose about 3.6% year over year.
Despite the uptick in the PCE reading, markets continue to price in the possibility of a Federal Reserve rate cut at an upcoming meeting if subsequent labor market data points to further weakness.
Ether ETFs maintain longer-term momentum
Since their launch in July 2024, Ether spot ETFs have continued to gain traction. Net inflows into Ether products rose about 44% during August, increasing from $9.5 billion to $13.7 billion. Observers attribute the renewed interest to a rebound in institutional demand following a period in which Ether underperformed relative to Bitcoin.
Corporate adoption of Ether on corporate balance sheets has also been rising: companies now hold an estimated 4.4 million ETH, valued at more than $19 billion, representing roughly 3.7% of total supply. “After an extended period of underperformance relative to Bitcoin and a souring investor sentiment, Ethereum has recently experienced a significant revival in the recognition of both its adoption rate and value proposition,” said Fabian Dori, chief investment officer at Sygnum.
Overall, the short-term ETF outflows on Friday reflected a broader market reaction to inflation data and trade-policy dynamics, even as the longer-term narrative for Ether products remains one of growing institutional adoption.
