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 have seen a net withdrawal of $164.64m, ending a five-day streak of inflows of more than $1.5bn.
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, and Grayscale’s GBTC were the next to exit with a combined net of $72,07 million. BlackRock IBIT saw a gain of $24.63m and WisdomTree BTCW gained $2.3m.
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Fed announces core inflation higher than anticipated
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 matching of forecasts came amid increasing evidence that Trump’s tariff regime adds pressure to core prices by increasing import costs. according CNBC.
Trump’s White House imposed a 10% baseline tariff on all imported goods and also targeted specific categories via reciprocal duty. While energy prices have helped to keep inflation under control, services are up 3.6%.
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 spot exchange-traded funds (ETFs) have seen steady growth since their July 2024 launch. Net inflows in August increased 44% from $9.5 billion up to $13.7billion. 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’s adoption in corporate treasury is also 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, chief investment officer at Sygnum and Cointelegraph.
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Source: cointelegraph.com
