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 dataEtherETHETFs experienced a net outflow in the amount of $164.64 Million, which reversed five consecutive days of positive asset flows that added over $1.5 Billion to this asset class.
BitcoinBTCThe ETFs have also experienced a negative day with a net loss of $126.64 millions, the first since August 22. Total assets under administration dropped from $28.58 billion to Bitcoin at $139.95 and Ethereum.
Fidelity FBTC had the highest outflow of Bitcoin ETFs in a single day, at $66.2 millions. ARK Invest, 21Shares ARKB’s ARKB came in second with a withdrawal of $72,07 million. Grayscale’s GBTC was the last to exit at $15.3 million. BlackRock IBIT saw a gain of $24.63m and WisdomTree BTCW gained $2.3m.
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Fed reports core inflation hotter than expected
The release coincided with outflows Fed’s preferred inflation gauge. the Personal Consumption Expenditures index (PCE). This showed a 2.9% increase on an annualized basis in July. It was the largest since February.
You can also find out more about the following: reportImport costs are increasing due to Trump’s tariff policy, and this is one of the reasons why prices have increased. according CNBC.
Trump’s White House has implemented a 10% baseline tariff on all imported goods and targets additional categories via reciprocal duty. Although energy prices kept inflation at bay, the services sector grew by 3.6% in one year.
CNBC reported that despite the rise in inflation the market still prices in the possibility of a Federal Reserve cut in rates at the next meeting. This is especially true if the labor market shows signs of further 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 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, chief investment officer at Sygnum and Cointelegraph.
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Source: cointelegraph.com
