The Federal Reserve published key inflation figures on Friday, which showed that price pressures were increasing under the President Donald Trump trade policies.
SoSoValue dataEtherETHETFs experienced a net withdrawal of $164.64 Million, which reversed five consecutive days of inflows of more than $1.5 Billion.
BitcoinBTCThe ETFs have also experienced a negative day with a net loss of $126,64 million, the first since August 22. The total assets under management fell to $139.95 for Bitcoin and $28.58 for Ethereum.
Fidelity FBTC had the highest outflow of Bitcoin ETFs in a single day, at $66.2 millions. ARK Invest’s ARKB and 21Shares ARKB were next with a net withdrawal of $72,07 million, followed by Grayscale’s GBTC at $15.3 million. BlackRock IBIT gained $24.63 millions and WisdomTree BTCW added $2.3 million.
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Fed reports core inflation hotter than expected
The release coincided with outflows Fed’s preferred inflation gaugeThe core Personal Consumption Expenditures Index (PCE), which in July showed a 2,9% annualized increase, was the highest level since February.
You can also find out more about the following: reportThe price increase was due to the Trump tariffs on imports. according CNBC.
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 this growth to the influx of new investors. rebound in institutional interest Following a period where Bitcoin underperformed.
Ether’s adoption in corporate treasury is increasing. Companies currently hold 4.4 Million ETH valued at $19 Billion, or roughly 3.7%, of the total supply. 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.
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Source: cointelegraph.com
