Spot Bitcoin and Ether ETFs posted notable outflows on Friday after the Federal Reserve’s latest inflation report showed price pressures rising under President Donald Trump’s trade policies.
Data from SoSoValue revealed that Ether ETFs saw $164.64 million in net outflows, snapping a five-day streak of inflows that had brought over $1.5 billion into the sector.
Bitcoin ETFs also slipped into the red with $126.64 million in net outflows, marking their first daily decline since Aug. 22. Ethereum’s total assets under management fell to $28.58 billion, while Bitcoin’s dropped to $139.95 billion.
Among Bitcoin ETFs, Fidelity’s FBTC led with $66.2 million in outflows, followed by ARK Invest and 21Shares’ ARKB with $72.07 million and Grayscale’s GBTC with $15.3 million. A handful of funds bucked the trend, including BlackRock’s IBIT, which saw $24.63 million in inflows, and WisdomTree’s BTCW, which added $2.3 million.
Fed Reports Core Inflation Running Hotter Than Expected
The outflows came alongside the release of the Fed’s preferred inflation measure, the core Personal Consumption Expenditures (PCE) index, which rose 2.9% year-over-year in July — the highest reading since February.
While the figure was in line with expectations, CNBC reported that Trump’s tariff policies are increasingly pressuring core prices by driving up import costs. The administration has implemented a blanket 10% tariff on all imports, along with additional reciprocal duties on select categories.
Energy costs helped keep headline inflation contained, but services surged 3.6% from a year earlier.
Despite the hotter inflation print, markets continue to expect the Federal Reserve to cut rates at its upcoming meeting, particularly if labor data points to further softening, according to CNBC.
Ether ETFs See Strong Momentum as Corporate Treasuries Drive Demand
Since launching in July 2024, Ether spot ETFs have steadily built traction, with net inflows climbing 44% in August — from $9.5 billion to $13.7 billion. Analysts point to a revival in institutional demand after a stretch of lagging performance compared to Bitcoin.
Corporate treasury participation is also picking up pace. Companies collectively hold 4.4 million ETH, worth more than $19 billion, representing about 3.7% of the total supply, according to StrategicETHReserve.
“After a prolonged period of underperformance versus Bitcoin and weak investor sentiment, Ethereum has seen a marked resurgence in recognition of both its adoption and value proposition,” said Fabian Dori, chief investment officer at Sygnum.
