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 dataEtherETH( ETFs experienced a net outflow $164.64 millions, which reversed five consecutive days of inflows adding more than $1.5billion to the asset category.
BitcoinBTCThe ETFs have also experienced a negative day with a net loss of $126.64 millions, 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, 21Shares ARKB’s ARKB came in second with a withdrawal of $72.07million net. 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 gaugeThe Personal Consumption Expenditures index (PCE) showed a 2.9% increase on an annualized basis in July. This was the largest rise 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 is the leading news network in Canada.
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 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
Demand for Ether ETFs is fueled by corporate Treasury
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 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. The total number of ETH held by corporations is 4.4 millions, worth over $19 Billion, which represents 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
