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.
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.
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.
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.
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.
Investors withdrew funds after the Fed reported rising core inflation (2.9% in July), driven by tariffs increasing import costs and service prices.
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.
Yes, markets still price in a potential Fed rate cut if labor data weakens, balancing trade policy impacts on growth and inflation.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
The Ethereum price suffered a steep decline as panic gripped global markets, pulling ETH/USD from…
The crypto market is currently in a robust recovery period as investors are shifting towards…
The SOL price experienced a steep decline on October 11, falling from $221.95 to $184.15…
Ripple’s XRP is back in the spotlight after a sharp rebound from recent lows near…
Volatility stayed high, but so did innovation. Amid new policies, global headlines, and market pressure,…
The crypto world was shocked today when President Trump announced 100% tariffs on all Chinese…
