According to data from SoSoValue, Ether ETFs experienced a sharp net outflow of $164.64 million, breaking a five-day streak of inflows that had brought in over $1.5 billion. Bitcoin ETFs also turned negative, recording $126.64 million in withdrawals — their first daily loss since August 22. Following the selloff, total assets under management stood at $28.58 billion for Ethereum and $139.95 billion for Bitcoin.
Outflows Reverse Momentum
The redemptions were led by major players. Fidelity’s FBTC posted the steepest single-day outflow among Bitcoin ETFs with $66.2 million withdrawn. ARK Invest and 21Shares’ ARKB followed with $72.07 million in net exits, while Grayscale’s GBTC shed $15.3 million. Only a handful of funds managed modest gains, including BlackRock’s IBIT, which attracted $24.63 million, and WisdomTree’s BTCW, which saw $2.3 million in inflows.
The moves came as the July PCE index showed a 2.9% annualized rise, the fastest pace since February. While the reading matched forecasts, it underscored the impact of Trump’s tariff strategy, which includes a 10% baseline tax on all imports alongside targeted reciprocal duties.
Analysts noted that while lower energy prices helped contain headline inflation, service costs rose 3.6% year-over-year, fueling worries about stickier underlying price growth.
Ether ETFs Maintain Longer-Term Momentum
Despite Friday’s setback, Ether ETFs remain in strong demand. Since their debut in July 2024, they have attracted steady inflows, with August alone seeing a 44% increase, lifting assets from $9.5 billion to $13.7 billion. Analysts attribute the growth to renewed institutional appetite for Ethereum after a period of underperformance relative to Bitcoin.
Corporate treasuries are also emerging as a significant source of demand. StrategicETHReserve reported that businesses now collectively hold 4.4 million ETH, valued at more than $19 billion — around 3.7% of the total supply. This trend reflects Ethereum’s growing role as a strategic asset for companies looking to diversify beyond Bitcoin.
Even with the latest market turbulence, expectations of a potential Fed rate cut at the next meeting remain, particularly if labor market data shows further signs of weakness. For now, ETF flows suggest that investors are taking a cautious stance amid heightened inflation concerns.
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