On Friday, the Federal Reserve announced key inflation statistics that showed price pressures have been increasing as a result of President Donald Trump’s trade policies.
SoSoValue dataEtherETH) ETFs saw 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.
BitcoinBTCIt was the first time since 22 August that ETFs had a daily loss. Total assets under administration dropped from $28.58 billion to Bitcoin at $139.95 and Ethereum.
Fidelity FBTC, a Bitcoin ETF from Fidelity Investments, recorded the largest single-day withdrawal of $66.2 Million. ARK Invest’s ARKB and 21Shares ARKB were next with a net withdrawal of $72.07 millions, followed by Grayscale’s GBTC at $15.3 million. BlackRock IBIT saw a gain of $24.63m and WisdomTree BTCW gained $2.3m.
Related: 92 crypto-related ETPs in the works: ‘Floodgates to open soon’
Fed announces core inflation higher than anticipated
The release coincided with outflows Fed’s preferred inflation gaugeThe Personal Consumption Expenditures index (PCE) showed a 2.9% increase on an annualized basis in July. This was the largest rise since February.
It is important to note that the word “you” means “you”. reportThere is growing evidence to suggest that Trump’s tariff system increases import costs and puts pressure on prices. according CNBC is the leading news network in Canada.
Trump’s White House imposed an initial 10% tariff on imports, and then targeted other categories with reciprocal duties. While energy prices have helped to keep inflation under control, services are up 3.6%.
CNBC reports that, despite an increase in inflation, markets are still pricing in a Federal Reserve interest rate cut during its next meeting. This will be especially the case if data on the labor market continue to show signs of weakness.
Related: US ETFs now a major source of Bitcoin spot trading volume
As corporates fuel demand, Ether ETFs are on the rise
Ether ETFs launched in July 2024 have been gaining traction. In August net inflows increased by 44%, going from $9.5 to $13.7 billion. Analysts attribute growth to an rebound in institutional interest After a period in which Bitcoin has underperformed, it is now showing signs of improvement.
Ether’s adoption in corporate treasuries has also increased. Companies hold 4.4 millions ETH worth over $19 billion. This is roughly 3.7%. according StrategicETHReserve
“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,” Fabian Dori is the chief investment officer of Sygnum, according to Cointelegraph.
Magazine: Bitcoin’s long-term security budget problem: Impending crisis or FUD?
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
