The Federal Reserve published key inflation figures on Friday, which showed that price pressures were increasing under the President Donald Trump 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.
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’s FBTC, which is 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 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 announces core inflation higher than anticipated
The release coincided with outflows Fed’s preferred inflation gaugePersonal Consumption Expenditures index (PCE), the most recent of which was 2.9% on an annualized basis in July.
You can also find out more about the following: reportThe. which met forecasts came amid increasing evidence that Trump’s tariff regime adds pressure to core prices by rising import costs. according CNBC.
Trump’s White House has implemented a 10% baseline tariff on all imported goods and subsequently targeted specific categories via reciprocal duty. Although energy prices kept inflation at bay, the services sector grew by 3.6% in one year.
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 After a period in which Bitcoin has underperformed, it is now showing signs of improvement.
Ether adoption by corporate treasuries is increasing as well. 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.
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Source: cointelegraph.com

