The Federal Reserve published key inflation figures on Friday, which showed that price pressures were increasing under the President Donald Trump trade policies.
SoSoValue dataEtherETHThe ETFs experienced a net outflow in the amount of $164.64 Million, which reversed five consecutive days of positive flows that added over $1.5 Billion to this asset class.
BitcoinBTCIt was the first time since 22 August that ETFs had a daily loss. The assets managed by ETFs fell from $139.95 to $29,58 billion.
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 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
Outflows were released at the same time as the Fed’s preferred inflation gaugeThe Personal Consumption Expenditures index (PCE), the most important measure of personal consumption expenditures, showed a rise of 2.9% on an annualized basis in July. This was the largest increase since February.
You can also find out more about the following: report. The results, which were in line with forecasts, coincided with growing evidence that Trump’s tariff regime adds pressure to core prices by increasing import costs. 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 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
Demand for Ether ETFs is fueled by corporate Treasurys
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 credit the growth to an 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. ETH is now valued over $19 billion by companies, or 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.
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
