Bitcoin and Ethereum ETFs Reverse Course After Latest Inflation Report

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Crypto ETFs stumbled on Friday as hotter-than-expected U.S. inflation data rattled markets, snapping a week-long streak of inflows into both Bitcoin and Ethereum products.

Fresh figures from Farside Invesors showed Ethereum ETFs bleeding $164 million, their first daily loss in nearly a week after adding more than $1.5 billion since mid-August. Bitcoin ETFs also slipped, with $126 million in withdrawals, marking their first red day since Aug. 22. Assets under management now stand at about $28.6 billion for ETH and nearly $140 billion for BTC.

Fidelity’s FBTC was hit hardest with $66 million exiting, followed by ARKB with $72 million. Grayscale’s GBTC lost $15 million. Only a few ETFs bucked the trend, including BlackRock’s IBIT, which pulled in $24.6 million.

Inflation Data Tied to Trump’s Tariffs

The pullback aligned with the Fed’s release of core PCE inflation, which rose 2.9% year-on-year in July — the hottest pace since February. Analysts point to President Donald Trump’s tariff regime as a key driver, raising import costs and putting upward pressure on services, which climbed 3.6% from last year.

Despite that, markets are still betting on a rate cut at the Fed’s September meeting, depending on labor data.

Ethereum Still Outshines Bitcoin

While the daily flows turned negative, Ethereum’s longer-term momentum remains intact. Since their debut in July 2024, ETH spot ETFs have seen steady adoption, with August inflows up 44%, bringing totals to $13.7 billion.

Corporate treasuries are also fueling demand, now holding over 4.4 million ETH worth around $19 billion, or nearly 4% of circulating supply.

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Author

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

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